Sorry to burst your bubbles, I'm not referring to the rising unit trusts nor index. However, what I'm referring to may be of very good news for investors dealing in alternative or niche areas like materials, energy and gold.
Currently, oil, gold and raw materials had hit their peak and we are unlikely to see the end of it. For oil, it is extremely simple, there's a very limited supply but yet the demand for it is growing. Hence, unit trusts dealing with energy are growing even though markets are still sluggish.
Recently, there's news regarding the reviewing of prices of iron ore by Chinese firms. It is expected that prices of ore would probably rise 60-70%. Thus, unit trusts dealing with materials are showing an upward trend too.
For the last week, I also noticed an upward trend in Latin American economies and as these economies are mainly dealing with raw materials, I deduced that their rise are probably due to increase in the demand for raw materials. The Brazil fund is doing quite well as a matter of fact as compared to other regional unit trusts. It is also interesting to note that Thai unit trusts are showing an upward trend. However, the return of Mr Thaksin back to Thailand is akin to a pebble dropping into a still pond and the ripples might be great enough to cause a trend reversal. However, if all goes well, the Thai economy might be on the rise again! Do note the situation before investing!
That's all folks! Currently markets are consolidating and the situation seems to be under control for now even though it is still a tad too quiet. Thus, my outlook is still cautious though I might look at some energy funds for the long term.
