Gold

If the price creeps up slowly, I feel comfortable.  It has been flying up again.  That means a drastic fall will come.

Today, of course, my portfolio went up much higher due to the fact that it is overweight in gold stocks.  But it will also mean that tomorrow if POG tumbles, mine will recoil hard.  The longer term POG is dependent on demand-supply balance.  However, in the short term, it is impossible to predict and it affects the valuation of my portfolios immensely.

Sometimes stocks are bought because of good write-ups all around, with great prospect.  But no matter how good the stock is perceived to be, the share price is dependent on what investors want to pay for.

Last night, at the Proactive forum, a guy asked the same question that I asked the CEO of another company: Why do Chinese companies pay a huge premium to buy their equities in Aussie companies?  Why not just takeover the stock?  I met this guy who asked the question and told him that it is because of politicians, like Barnaby Joyce.  He jumps up and down when Chinese company takes over an Australia company.  But he does not make any noise if it is Brits or Yanks doing the same.