Invest in gold or in stock markets of emerging economies?

With all the news of the World Bank president Zoellick calling for gold to be brought back into the global monetary system and with gold prices pushed to above USD1.4k per ounce (record price) is really causing a lot of "excitement" to many people to think whether they should continue to pile their money on gold or the rising stock markets especially the Asia stock markets. At the same time, stock markets continue to chart new highs as well....

Certainly many will think that we can always invest in both gold and stocks...but what's the ratio like?

Like I mentioned previouly stock markets will likely continue to hit new highs for the next 1 year at the very least and with that I would think that investment ratio should be heavily focused on stock with about 20% on gold. Afterall how many chance do we have in our lifetime for us to see through a financial crisis and to ride the recovery? Well, now is the time... :)

Be brave when others are afraid....

QE2, what's the impact...

Well, USD1.7trillion and it is still not enough.... what makes the Fed thinks USD600bil will do the job? Simple, the Fed just wanted to debase the dollar and narrow the gap between the China Yuan and the USD.

The consequences of this QE2 is obviously going to cause a boost in the comodity prices and eventually things are going to get much more expensive (inflation will creep in). While the rise in the equity market will appear to be giving the people more money or ROI for their investment in stocks, the value of the return actually may have shrunk for anyone investing in the US. Couple by the devaluation of the dollar, it makes matter worst for foreign investors like me....

In my personal opinion, the dollar will continue to devalue to the point of about USD:RM of 1:2.78 range and that's basically the level close to the pre-financial crisis that hit the world Asia in particular. Therefore, I believe the emerging markets will benefit emensely from the 600bil of liquidity that may eventually find its way to the stock markets of these countries..

KLCI will likely reach 1650 by Q1 next year.... at the same time, I think property market will also benefit from this extra cash that is floating around with interest rate close zero.

In conclusion, long equity.

Altera hit USD33 as predicted...!!!

Well, Altera made it to USD33 as expected and I just have to say, Morgan Stanley probably should fire the analyst who made the comment on downgrade and making comments of the stock will fall to USD24...

Honestly, this stock made me proud cause it just made my day... >30% gain in less than 1 quarter.

E&O poised to rise

Well, with so many property friendly news recently property counters certainly has not moved abit.... but things are going to be different going forward...In Q4 alone I expect property sector to gain at least 15% from Q3 and just take a look at E&O which certainly look promising from chart perspective and if the stock continue to climb and break above the zero line with volume, i think this will trigger a property rally most certainly.

You can certainly cross check with the heavyweight SP Setia which gain almost 30 sen today.

Immediate recommendation for those with stocks in property...."Let it ride"

Morgan Stanley or S&P 500?

Many people follows what most analyst are reporting blindly but the number is reducing these days... most people review the data and make the decision after some analysis on their own... While it serves as a guidance to some, many falls as victims of confirmation bias.

I personally have review so many analyst reports in the past and one particular guidance that I find rather reliable in the sense that the projection mostly materialize itself is the S&P stock price guidance, in fact I would say most of them are rather conservative in nature.
Here's the link.

http://www.bloomberg.com/news/2010-10-25/s-p-500-analyst-target-price-changes-for-oct-25-table-.html?cmpid=yhoo
A quick snap shot, Altera and Xilinx both from the FPGA industry is targeted to be $33 and $29 respectively... similar to my earlier Oct 18th posting on these 2 companies.
Well you be the judge who to follow...