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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.
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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 About 3 years About a year About 5 years
Economic cycle vs long term HSI(2010) = 20000 HSI(70s) = 100
Buy at 14000Sell at 22000Annual gain >50% Performance of HSI
Tactics • Not to buy at the lowest (but to sell at low) • Not to sell at the highest (but to sell at high) => Make sure you are to win
Target price • Buy the HSI at 20000 • Sell the HSI at 30000 Questions: • Do you believe that the HSI will finally be back to 30000? • 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 • Not to lose • Expected annual return at least 10%, can even as high as 50%