Most unit trusts lose money

"86% of CPF funds lost money last quarter", screams the headline in The Straits Times yesterday. It comes to me as no surprise. With the Fed steadily raising rates since mid-2004 till this month, stock markets around the world have declined in general, and that savaged unit trusts and investment-linked insurance plans (ILPs). I prefer to…

spend more time and effort in managing my own money because there is something inexplicable about being in total control of your finances, that’s why I choose to be a full-time investor.

The latest rate pause by the Fed does not mean much really, because oil prices are still biased on the upside due to geopolitical tensions. And since rising oil prices are resulting in inflationary pressures, many countries around the world will see more interest rate hikes in the near term.

Bad for stocks, I say. But for currencies, that’s a different story. I certainly do not advocate Forex trading as a sure way of making money, but Forex does offer a much more flexible way of investing funds, whether short-term or longer-term. But that really depends on one’s own preference. It takes a lot of efforts to make money from the financial markets; it’s not an easy game.

Will add another blog post today later on.

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