Monthly Archives: January 2014

Asian Stock Markets

As we enter 2014 Asian markets are about 1/3 cheaper than US markets. As whole Asian investments are trading at 10 times earnings.

Historically when Asian stocks have traded that low they have experienced significant advances.

How can you best determine whether and where to invest to outperform investments in US market?  The same way you should analyze all investment decisions. Carefully study individual companies or invest through a sector fund. There is no substitute for research.  Talk to your broker or financial advisor, but also do your own research.

2013 was wonderful year for US investments. 2014 is not expected to be near as good. To duplicate 2013 earnings success smart investors are considering stocks within and outside the US.

Many experts suggest investing no more than 4% of your investment dollars in any one trade. Then use 25% trailing stops. That minimizes loss on any given investment to 1% of your total investment dollars. Raise your trailing stop  as investments increase.

South Africa’s Industrial Metals

Yes, South Africa always seems to be dealing with political instability, but it continues to mine key metals used throughout the world.

We all know about gold and diamonds, but there is also palladium, nickel, aluminum, and huge coal reserves. 2014 China can no longer produce as much coal as it uses. China is largest consumer of coal in the world. It is used primarily to generate electricity.

Diamonds are used by industry for cutting, grinding and drilling. Palladium is major component in catalytic converters in auto exhaust emissions. Nickel is important in production of steel. It also is used for corrosion resistant plating.

Mining companies had a tough year in 2013. They are undervalued. Additionally, China continues to acquire as many mining assets in South Africa as they can.  Those are just couple of factors that could have positive investing options in South Africa.

Prevalent opinion is that Europe and emerging companies will provide better investment opportunities in 2014 than the US.

 

Instant Messaging is not Reality

Purpose of “messaging” is to bombard listeners with a message in such a way that listener believes the message, or at least is bombarded enough that the message loses it’s ability to spur the listener to action.

Goal of messaging is to win the mind battle…regardless of reality. It’s just a form of brain washing.

Modern technology has enabled the rise of instant messaging. Before that it was pretty well relegated to ads and commercials, and the occasional quote.

Literate man can stand back  and objectively look at situations. Actually reading something requires reader to react quickly and make quick decisions. Words have multiple meanings. Goal of almost all TV is to totally involve a person’s mind subjectively, thus avoiding real rational thought.

Psychologists have long known that message repetition is the key to having people think positively about an idea or person . Repeat it often enough and people begin to believe it’s so. That was the foundation of brain-washing, as early as WWI…both for the enemy and for a countries own citizens.

Besides TV, we now have many other forms of instant messaging from Facebook, Twitter, etc. Even most blogs are “pushing” a particular thought or idea.

Politics is totally dependent on messaging. Obamacare could have never passed had it been explained to the public. Politicians understood that and boiled 20,000 page document into overly simplistic sound bites.

Each of us needs to remember what the objective of our “message” is before we send out the message. Is a simple text or visual image the best way to get the message across. Is our message helping people make rational decisions, or are we just trying to indoctrinate them to our view.

 

Read interesting article by Marta H Mossburg in The Project to Restore America, Fri. 1/3/14