Occasionaly, I receive Dr Chan newsletter, through my Singapore stock broker. His newsletter is bilingual, and it seems that Chinese is the first language. It is then translated into English. I have high opinion of Dr Chan’s analysis of the stock markets in general. Also, reading it is a good way to improve my Chinese vocabulary, especially words used in the financial world , like hedge fund, derivates instrument etc,
Here’s my attempt to translate part of Dr Chan’s latest newletter from Chinese into English:
一月初，股市表现的很不错，创出去年3 月之后的新高。冷不防，美国奥巴马总统说要.立法禁止银行坐盘炒股，炒衍生 (yan3 sheng – derivatives) 工具，也不可持有对冲基金 (dui4 chong ji jin4 – hedge fund)。
At beginning of January, the stock market performed rather well, breaking last year’s March new high. Unexpectedly, US President Obama said he wanted to legislate law prohibiting banks from speculating in share market, derivatives instrument, and also from holding hedge funds.
单一银行有款额 (kuan3 e2 – fund ) 更不能超过全国银行存款额的10%………….
A single bank’s fund amount also cannot exceed 10% of the entire country’s bank deposit.
Obama’s battle decree caused the rising stock market to suddenly drop, and Singapore stock market was no exception.
我担心这一次的调整 (tiao2 zheng3 – correction, adjustment) 会是一个较大型的调整，因为去年3 月股市见底以来，仍未出现过任何较大型的调整。
I am afraid this time the correction will be a rather large correction, as after the last low in March last year, there has not been any large correction whatsoever.
The rising trend has been too long, perhaps it’s time for the correction, and everyone should be careful.
如果真的出现大调整，调整幅度(fu2 du4 – range, scope) 可达过去升势的三分之一。过去9 个月，海指上升1500 点，三分之一即500 点。这是技术分析的理论下跌幅度。
If really there is a large correction, it could correct to one third of the rise. In the past 9 month, the Strait Times Index raised 1500 points, and a third is 500 points. This is the technical analysts’ theory of the range where it will not drop further.
I am not an advocate of short term investment, thus when there is correction there is opportunity to collect for long term holding, and not for short term rebound.