STE's Stocks Investing Journey

Today, I’d like to take a deep dive into the fascinating world of global finance and explore how global liquidity has reshaped the stock market since the Global Financial Crisis (GFC). Over the past decade and a half, central banks around the world have been pumping money into the financial system, almost as if cash could grow on trees.  This wave of liquidity has changed the way markets move, fueling long bull runs and altering the nature of bear markets. In this post, we’ll unpack what this “ flood of money” really means, how it has transformed investor behavior, and why understanding liquidity has become essential to making sense of today’s financial landscape and what does that mean for bear markets, investor confidence, and the long game? Liquidity: The Market’s Lifeblood Let’s start with the basics. When we talk about liquidity in the context of global markets, we’re talking about the cash (or near-cash) that central banks like the US Federal Reserve (FED), European Central...

I know we worry about a myriad of issues concerning stocks market because it affects our portfolio value day in day out. Our heartbeat increase when we look at the news headlines about “ trade war “, “Interest rate increase “, “ EM slow down”, “US Mid-term election”, “Sanction on Iran “ etc.. But should we press our panic button to “ buy or sell” every time we saw these news headlines which cause the market to fluctuate up and down? Read this before you make a hasty act on trading your stocks base on “ News Headlines “ . Buy American. I Am. By WARREN E. BUFFETT OCT. 16, 2008

Since the start of 2018, the stock market has experienced higher levels of volatility than we’ve seen before. The result has been in many headlines or news highlighting the downfall of a strong market and how much the market cap has been wiped out in such a short period of time. It’s left many people wondering if this is normal and healthy, or a sign of worse things to come ? For me, it is normal for the markets to experience a short-term drop in prices, typically followed by a long-term advance. Those are the facts. The complexity of available financial products is contributing to this unusual volatility. In recent years, the financial services industry innovates by creating new and complex products such as Options/ Future / CFD / DLC that track everything from market volatility to price speculative. These leverage products/derivatives  give “ investors or gambler “ entirely new ways to “trade or gamble” on the market. I am sure the market will tend to be more vol...

I took out this book from my bookshelf recently and re-read it again, with much curiosity, I wanted to find out if I could learn something from the past financial crisis and if there is any similarity of past crisis vs recent crazy the price movement of Bitcoin.    I read with great interest especially in Chapter 4 ( Fueling the Flames: Monetary Expansion ) . Quote “ Speculative manias gather speed through the expansion of money and credit or perhaps, in some cases, get started because of the initial expansion of money or credit. One can look back at particular manias followed by crash or panic and see what went wrong .“ Unquote

Will there be another market crash in 2017? The unlucky 7 Whenever there is a year ending with 7, the stock market will collapse and have a crisis. For example, the name for the   1987   stock market crisis is Black Monday. Interest parity arbitrage trading and currency war fueled the   Asian Crisis   in   1997 . It involves borrowing a cheap currency with low yields and investing in a stable currency with higher yields to earn spread income, known as  positive carry.  Hence the name,  carry trades.