Gold Glitters - Why it will be the Best Performing asset class this year

According to Deutsche Bank about 15 % of the government bonds globally trades at negative yield, many investors who shunned  gold because of its zero yield does not consider it as a penalty now. Its unthinkable that Government are getting paid to borrow money as people seek for a safe haven to park their money as trade tension and volatility rise, its no surprise that people are flocking to Gold.

Another compelling reason that make Gold a natural investment choice is central bankers around the world competes in a monetary race to bring rates to zero. Fed cuts interest rates from 2.5 to 2.25% last month and this marked the central bank's first rate cut since 2008. Recently New Zealand, Thailand and India followed in the wake of the Fed to cut rates.

As interest rates worldwide goes negative, investors suffers less opportunity cost from  gold's zero yield. Gold is traditionally  an inflation hedge and its appeal as a stored value is back again.

This blog has been predicting Gold will be the top investment asset class since 23 Mar 2019 when Gold was trading at 1310 and thus far it has hit my first target at 1550. Gold is poised to test its 2011 high of 1915 this year.

On the Chart, this is my outlook and where Gold stands now

All posts and charts are for educational and illustration purposes only

Robin Ho At Spore InvestFair 2019

I will be speaking at Spore Investment Fair 2019 on Sunday 12.00. Hope to catch some of you there!

All posts and charts are for educational and illustration purposes only

The Giant Hunt For Yield Will Lead To A Financial Melt Down

The Giant  Hunt For Yield Will Lead To A Financial Melt Down

The US 10 Years Treasury yield is poised to test the 6 years low at 1.35% as negative bond yields wash over Europe and Japan. This will force  the Fed to keep lowering rates so that America can remain competitive with the rest of the world. Investors and corporation will be force and lured into taking riskier bets and anything that provides some sort of decent cash flows will be bought up, as American yields head lower and lower. The elusive inflation,  that central bankers hope will rise to ease the global debts problem has not materialize inspite of prolonged monetary stimulus. The build up in risky asset and debts will eventually lead to a Big Blow up. The only safe haven this blog believe is in Gold.

All posts and charts are for educational and illustration purposes only

China Yuan Devaluation and Its Impact

China’s currency broke through the psychologically important level of 7 yuan to the dollar, prompting President Trump to accuse Beijing of manipulating its currency .

PBoC said the currency’s slump was “due to the effects of unilateralist and trade-protectionist measures and the expectations for tariffs against China,” the People’s Bank of China said in a statement.

Currency weakness is a textbook response to tariffs being imposed on a country’s exports but do not expect a repeat of Monday’s large one-day depreciation because devaluation will hurt both countries as imports becomes more expensive for chinese companies.

Monday’s move should be seen as a warning shot , its more likely the PBoC will be to allow a gradual (2018-style) depreciation in response to the heightened tariff threat given that global trade and manufacturing are already considerably weaker than a year ago.

The other smaller Asian currencies will also weaken in the wake of the yuan . The weakening of the yuan will be also post as a tailwind for commodity prices Historically, turning points in the CNY/USD exchange rate have also coincided with turning points in commodity prices. This blog expect commodity prices to be soft going forward to the end of the year.

All posts and charts are for educational and illustration purposes only

Robin Ho's Live Trading Bootcamp

I will be conducting a live trading boot camp on National Day, 9 August 2019 at One Good Trade Cafe. 

The cafe can accommodate 30 participants, and registration is on a first-come-first-serve basis. Join me if you are free!

Registration and details here:

https://rholivetrading.eventbrite.sg

About One Good Trade Cafe / Menu for the Day

One Good Trade Cafe is a social networking platform for traders & investors. Come enjoy great coffee with like-minded people or chill with a beer, wine or cocktail with bar bites and all-day dining.

Your meals are covered for the day! Enjoy the sumptuous signature meals at One Good Trade Cafe while you learn. Here are your meal options (please indicate your meal preference as you checkout).

All posts and charts are for educational and illustration purposes only

Market Outlook 3Q 2019 - Slides Download

We had a fruitful market outlook seminar on Saturday! More than 400 participants gathered at Nexus auditorium as I shared on the new global trends and stock trading ideas, particularly what a smart investor will do in the new digital age and the low inflation and low interest environment.

If you have missed the seminar, you may download selected slides for more trading ideas: Click here to download slides

Please join us for the next Market Outlook and take advantage of the super early bird promotion (last few days): Click here to register

Next Market Outlook

14 Dec 2019, Saturday

930am - 1230pm

Cuppage Plaza

5 Keok Road #05-07

Singapore 228796

My upcoming Master the Markets trading course with Cyberquote is scheduled in October 2019.

In this course, the class will monitor and trade a portfolio together with me over a 3 week period. Join me for a hands-on, practical experience in trading!

Send your queries to: robinhosa@phillip.com.sg cc: tanyunyou@phillip.com.sg.

All posts and charts are for educational and illustration purposes only