Global market update!

[Valuegrowth]

It was some frontier markets which had some resilient to some of the biggest drops recently. However both developed and emerging markets have outperformed the frontiers markets during last two days. It is very interesting. What a day was for USA stocks. It was a day for Nikkei 225 as well. Some of the top winners were Boeing and ATHN: US and 9501: JP

In any market there are different type of market players such as hedge funds, high net worth individuals, professionals, day traders, short term players, long term investors, investment banks, different type of financial instrument players, small players, insurance companies and other financial institutions etc. Some are for long term horizon and some don’t have any strategy. Some can move money in and out quickly and it can affect for some stocks in the short run. Those with good experience and skills have done well in emerging and frontier markets. Some of the funds which exposure to Asian markets such as Aberdeen, Franklin Templeton Investment Funds, and IFC have long term view on these markets and they don’t act like grasshoppers. They have done their serious study on markets. There are few global frontier emerging funds including some foreign partners also there for long tern serious business. I have seen even top investors, investment banks and other funds have invested and traded in these emerging and frontier markets. .

If we analyse global markets almost everybody make mistakes. Either they will sell too early and buy late. Sometimes some market players could become panic suddenly. On the other hand intelligent market players know what they are doing. For example there were huge sell off in South Asian markets before 2009. I can remember even some hedge funds liquidated their funds. After those selling we saw one the best bull markets in Sri-Lanka in 2010 and 2011. Similarly Indian sensex went up from around 12,000 to over 20,000 levels in 2010 after fire sales. When we analyse some developed markets such as USA and UK there were fire sales in some bank stocks before 2009. I was following CITI Group more than BAC. Fire sales and panic create opportunities for intelligent long term players. I also can remember some Japanese housewives put their valuable money in AUD when it was going down and they lost heavily. Later they missed the biggest rally in AUD during last couple of years. Who knows they may buy now. Markets are full of risks and returns. In some situation it is better to forget short term volatility in some markets to reap long term benefits.

My ideas are not a recommendation to either buy or sell any security, commodity or currency. Please do your own research prior to making any investment decisions.