My original investment in the DB Vietnam Tracker (HK:3087) has been a very poor one - I am down about 43% on original cost. Inflation/currency depreciation have been major contributors to the poor performance.
That said, my expectation that Vietnam will make considerable economic progress remains intact. Economic liberalisation, development of the rule of law, recognition and protection of private property rights, improving infrastructure (especially in transportation and communications), improving education standards are supported by anecdotal stories of manufacturing shifting from the PRC (among other places) to Vietnam. The demographic profile (a very young population) is also a positive.
This morning I added some additional units to the portfolio at a price of HK$162.50.
3 comments:
its from DB and not DBS?
JD
DB it is. Thanks for pointing that out. I'll edit the original post.
Cheers
traineeinvestor
Im am speaking about exchange traded funds and closed end funds from the perspective of being a citizen of the united states. The following may not apply to investors worldwide. Their are now over fifty single country funds available and maybe over 100 narrow sectors like airlines steel solar so why the concern for the nasdaq or the standard and poor five hunderd each one of these countries and sectors is a index of and by itself The solar exchange traded fund {TAN} is now down 90% from its high in 2007. If I were a investor or trader I would simply look for any exchange traded fund or closed end fund that does not use any leverage in their porfolios and start buying in the ratio of 0.50 percent of your cash on hand in my account after their is a 75% decline from its all time high and than buy twice as much in the ratio of 1.00 percent of your cash on hand in my account if that exchange traded fund or closed end fund declines another five percent an 80% decline from its all time high buy twice as much in the ratio of 2.00 percent of your cash on hand in my account at a 85% decline from its all time high buy twice as much in the ratio of 4.00 percent of your cash on hand in my account at a 90% decline from its all time high and finally buy twice as much in the ratio of 8.00 percent of your cash on hand in my account at a 95% decline from its all time high. Now I know that some of these funds will not decline 90% from their all time highs. Another thing that you might be wondering about I would run out of money. If I followed that method right wrong example take one hundred thousand dollars. Example Buy 500 dollars of xyz fund at 25 dollars off 75% from its all time high of 100 dollars buy 1000 dollars of xyz at 20 dollars off 80% from its all time high of 100 dollars. Buy 2000 dollars of xyz at 15 dollars off 85% from its all time high of 100 dollars Buy 4000 dollars of xyz at 10 dollars off 90% from its all time high and finally Buy 8000 dollars of xyz at 5 dollars off 95% from its all time high This way you will have your biggest positions in the funds that have declined the most and the smallest positions in the funds that have declined the least. Also keep in mind when you buy an exchange traded fund you are buying a basket of stocks so the fund connot go to zero unlike a stock. Than when any fund has regained three quarter of its value that would be 75 dollars in the case of eyz use a 10% trailing stop loss to protect your gains. Who knows you may sell out of the stock within 90% of its all time high.
And their you have it a very simple but brilliant strategy for exchange fund and closed end fund investing.
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