Tuesday, September 30, 2014

Balls Deep - That's How I Roll (Part II)

Put your money where your mouth is at right? I'm a contrarian, so here we go!

Earlier this March, I took a seemingly crazy trade and went into Russian equities. I know, crazy right?

Fast forward to 3 months later, I exited my position in Russia for a nice cool 20% odd gain.

Today I just entered into another 2 seemingly stupid positions as well. Check out these 2 charts below.

These are the 5 year charts of the GDX and the RSX. Gold mining equities and Russian equities. I think the consensus is pretty clear that everyone thinks Gold is a crap and worthless asset, while Russia is going to be sanctioned to oblivion.

But oh well, buy low, sell high, right?

I purchased the unit trust proxies for these 2 ETFs and I am planning to sit on these babies for years to come or as long as it takes. Downside seems limited and upside seems plentiful, while I am just worried about the expenses eating into my capital base. It's the last day of the Phillip 0% promotion, so at least I can console myself saying that I saved 0.75% making these trades? Haha.


  1. Wow nice gain there on the Russian market.

    Can I check where did you make trades on the Russian ETF? I heard that it was low in valuation but never really checked them as I do not know much about the economy there.

    1. Heya B,

      Thanks, it really was a good emotional test for me, especially with bad news coming out every other day.

      I didn't purchase the ETF for Russia, though the tickers would be RSX and RSXJ (small cap). Instead I purchased the HSBC GIF Russia Equity AD SGD unit trust from POEMS. It is not a perfect proxy, but I think the idea is there. It is not easy to get exposure in this really specific and niche asset class, however I think at this valuations based on PE, CAPE and forward PE.... it is well worth looking at more closely!

  2. impressive gains also. if it can be repeated, wow...super.

    for me, i cannot seem to make money so fast....people call me tortoise investor.. visit me when u r free


    1. Hi Paul,

      Thanks for the comment. I didn't expect the gains so fast, so I took profits early. I didn't mean for it to be a swing trade! I think slow and steady is a good approach to investing, rather than fast and furious. The more boring the method, the better it is because emotions take a backseat and rational logic will block bad decisions!

      Yes, looking forward to more of your analysis! SL is already on my watchlist, but Genting is not.


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