www射-国产免费一级-欧美福利-亚洲成人福利-成人一区在线观看-亚州成人

USEUROPEAFRICAASIA 中文雙語(yǔ)Fran?ais
Business
Home / Business / Talking Business

Successful investors should not follow the herd

By Huang Xiangyang | China Daily | Updated: 2016-12-27 07:39

Successful investors should not follow the herd

A driver fuels his car at a gas station in Jiangxi province. Oil prices have been rising recently. [Photo/China Daily]

One of the lessons I have learned over the years is that to beat the market you have to do just the opposite of what others do. In the battle for wealth the winners are always the tiny minority of people, because decisions made by the majority are always wrong. This is a market driven by herd behavior, and it always will be.

With this in mind, I could smell the scent of money from falling global crude oil prices in the middle of last year. Domestic stocks were overpriced then after the market had been bullish for almost a year. Yet oil prices had dropped by half from more than $100 a barrel a year ago, partly due to uncertain global economic prospects after a financial crisis. It was a good chance to "buy low".

So I put some money in a crude oil-related fund, set up as part of the country's qualified domestic institutional investor programs to invest overseas.

In the following months the oil price continued its downward spiral, falling to $50 and then $40. Accordingly, the net value of my fund holdings shrank markedly.

A supply glut was blamed for the drastic price decline as OPEC nations refused to cut output in a bid to protect their global market share. Advances in US fracking technology used to extract shale oil added to the oil price woes. Goldman Sachs predicted oil could drop to $20 before things got any better.

That worst-case scenario was possible. Production costs in some OPEC countries were said to be well below $20 a barrel, and oil had hit an historic low of $3 in the 1970s.

So should I continue to increase my stake?

I hesitated. Actually I was confused by the major changes which had taken place in the global crude oil market. I recalled how oil hit its historic high of nearly $150 in July 2008, only to plunge to less than $40 five months later. This could not just be explained by changes in supply and demand.

Then suppose the very reason given for the oil price fall-a supply glut-were true, could it be sustained? Each time I wait in my car in a long line at a gas station to refuel, or I am stuck in the city's increasingly worse traffic jams, I feel relieved somehow that the thirst for oil in this country never seems to be satiated.

As legendary fund manager Peter Lynch put it, "a decline (in prices) is a great opportunity to pick up the bargains left behind by investors who are fleeing the storm in panic".

Emboldened by these words, I poured more money, tens of thousands of yuan, into my fund holdings, in the firm belief that oil prices will not remain that low forever. I was greedy when others panicked.

Then came the time to reap the reward, when OPEC and other oil producing nations clinched a deal to freeze output late last month, which immediately sent oil price up above $50, a 40 percent hike from its low at the start of the year.

In investment, it always pays off to be patient.

For me, the year end is the season of harvest and contemplation, the time when I would look back at my investment results over the past year, and learn from the gains and losses which I may use as a guide for future performance.

I am not a serious investor who spends a lot of time studying news, policies and techniques in pursuit of maximum profit. I don't bet the farm on the market. For me, investment is a fun game to test my judgment, and I use my small investment pool of stocks, funds and gold as a means to feel the pulse of the markets.

This makes it much easier for me to laugh off losses and remain cool-headed amid drastic price fluctuations.

Most Viewed in 24 Hours
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
主站蜘蛛池模板: 欧美三级超在线视频 | 欧美成人777 | 国产精品99r8在线观看 | 中文字幕亚洲另类天堂 | 久久精品视频在线播放 | 男人又粗又硬桶女人免费 | 精品国产一区二区三区不卡蜜臂 | 久久精品全国免费观看国产 | 国产情侣自拍网站 | 有码视频在线观看 | 日韩一区二区三区在线免费观看 | 日韩精品一级a毛片 | 日韩一区二区三区在线 | 亚洲欧美日韩精品在线 | 亚洲综合天堂网 | 久久久亚洲欧洲日产国码二区 | 国产成人免费观看在线视频 | 日本黄色免费大片 | 亚洲成人综合网站 | 久 在线播放 | 中文字幕s级优女区 | 美女张开腿让人捅 | 国产精品视频男人的天堂 | 国产99视频免费精品是看6 | 在线精品自拍 | 久草久草在线视频 | 成人不卡视频 | 国产高清在线看免费视频观 | 另类女最新视频 | 久久久久久久久毛片精品 | 伊人五月天婷婷琪琪综合 | 国产成人精品一区二三区在线观看 | 日本高清视频免费在线观看 | 一级做a爱过程免费观看 | 欧美一区二区三区在线观看免费 | 毛片免费高清免费 | 亚洲精品不卡视频 | 国产精品视频免费观看调教网 | 久久777国产线看是看精品 | 国产免费专区 | 久久久青草|