I haven't had time to post a new entry the past few weeks; so I'm going to get my feet wet by starting with a short one addressing today's across the board sell-off. Some friends of mine who have just entered the market the past few months have expressed their concern of today's market action.
Many investors are concerned that the economic recovery is faltering and when there is uncertainty in the equities market, the usual response it to hoard cash by selling riskier assets. Unfortunately, emerging market (like ours) falls into the category of "riskier assets". Our economy is still poised to grow this year and probably the next few years, so i believe the EU zone uncertainty is simply a bump on the road.
At the end of the day, markets will rise and fall due to chatter, but we should rest easy knowing that the value is what drives the price or down, not sentiment by fund managers, individuals, or as others may say, weak hands.
Just a quick note of what I've been looking at recently. SCC has continued to attract my attention, the recent 3 figure spike in profit growth is something we just can't ignore. LC has also begun to attract my attention due to the increased volume and good news coming from its foreign partner, Gold Fields, a swiss-based mining company (I will be posting an entry on this soon). A few other companies that I have continues to study are DMC, MBT, UBP.
