Gold Prices and Dollar Index Shows The Underlying Strength of Gold is strong

Gold Prices and the Dollar Index - As a rule of the thumb , when the value of dollar increases relative to other currencies,  the price of Gold tends to fall in dollar terms. Its because gold becomes more expensive in other currencies.  Today spot gold cross the 1600 level in the midst of a bullish dollar trend, it shows the underlying strength of Gold is very strong and this multi year gold bull cycle that started in Mar 2019 will continue.

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Wall Street Melt Up Looks Like the Run Up Before The Dot Com Bust

U.S. stocks ‘Melt Up’ Looks Like The Final Leg Of Run Up That Happened Before The Dot-Com Crash

It seems like no matter the negative headlines including the disruptive and destructive  corona virus epidemic  stocks continue pushing higher.

Inspite of the Wuhan virus outbreak that threatens to  disrupt global supply chain and businesses in an unprecedented scale  , the benchmark the Wall Street  Index has not only regained its losses from its previous highs two weeks ago but have scaled new highs

The markets are ignoring the negative news but choose to place their faith in central bankers and its easy-money policies – like interest rate cuts and liquidity injections from the most powerful central banks in the world – only throwing  rocket fuel on the Melt Up in U.S. stocks.

The writing is on the wall, we might be reaching the late innings of this historic bull market, but the gains are accelerating. This is really looking like what happened in the late 1990s during the run-up to the dot-com peak.

Of course, a brutal bust followed the dot-com bubble... And the Fed is up to some of the same tricks again today. But most important, smart investors who followed the market higher – and got out at a good time – made a killing.

That's exactly what can happen again this time...

For the smart investors , make the  money and  retire,  it could be the final shot, the Melt Up is about to hit a dramatic turn.

All posts and charts are for educational and illustration purposes only

Talking to Young Investors at SIT

On Monday, I was invited by SIT Investment Club to talk to "Let's Talk about Money". This is a financial literacy initiative in collaboration with Doctor Wealth. 

I gave the students an overview about the different type of assets to get started on their investment journey. We also looked into real life examples of different kinds of stocks, such as growth stocks, income stocks, speculative stocks, and how to avoid the pitfalls many investors made so that they can start off in the right way.

To encapsulate my points in one picture, I showed them an illustration of a hamburger. It sums up how they can start building their portfolio with sound asset allocation. 

Instead of diving straight into stocks, a young investor can consider starting with a saving plan which gives predictable returns to form the foundation of their retirement income. 

Insurance is key to and should be budgeted well so that it gives adequate protection and also leaves them with sufficient cash flow to pursue their personal growth.

Finally, when they have accumulate sufficient capital, they can look into deploying their funds into a portfolio of stocks, bonds etc. 

Knowledge is power! I hope all of us will continue learning every day.

For enquiries about how to optimise your assets allocation, email us at 

to: robinhosa@phillip.com.sg, cc: tanyunyou@phillip.com.sg 

All posts and charts are for educational and illustration purposes only