investment tactics
DESCRIPTION
Investment tactics. Hung Pui Ki, Majesty 2008078285. Investment Objective. Not to lose Expected annual return at least 10%, can even as high as 50%. Economic cycle. Economic cycle. About 3 years. About a year. About 5 years. Economic cycle vs long term. HSI(2010) = 20000. - PowerPoint PPT PresentationTRANSCRIPT
Investment tactics
Hung Pui Ki, Majesty
2008078285
Investment Objective
1. Not to lose
2. Expected annual return at least 10%, can even as high as 50%
Economic cycle
Economic cycle
About 5 years
About a year About 3 years
Economic cycle vs long term
HSI(70s) = 100
HSI(2010) = 20000
Performance of HSIBuy at 14000Sell at 22000Annual gain >50%
Tactics
1. Not to buy at the lowest (but to sell at low)
2. Not to sell at the highest (but to sell at high)
=> Make sure you are to win
Target price
1. Buy the HSI at 20000
2. Sell the HSI at 30000
Questions:
1. Do you believe that the HSI will finally be back to 30000?
2. Then, do we stand any chance to lose?
Return
• Average time to be back to 30000 = 2 yrs• Max. time taken to be back to 30000 ≈ 5yrs
• Average capital gain: Time = 2 yrs, Buy at 20000, Sell at 30000Annual return = 20%
• Min. capital gain:Time = 5 yrs, Buy at 20000, Sell at 30000Annual return = 8%
• Risk Free return ≈ 2%
Investment Objective
1. Not to lose
2. Expected annual return at least 10%, can even as high as 50%