Tuesday, February 15, 2011

Uneasy thoughts about world order!

HI guys, Im just back from Korea.

It has been a good trip exploring a couple of projects and meeting up with my Godpa, but it was so cold there! I really admire the Koreans. They managed to live prosperously under the threat of civil war as well as lack of resources with terrible weather. They are indeed true survivors.

When I was there, Egypt’s former President, Mubarak announced his stepping down. I was quite amazed at the recent turn of events in the Middle East. The last time I was there, I went to visit Oman. The people there were well looked after but you can feel the underlying tension. I was surprised that the Egyptians actually fired the first salvo as they are known to be a docile race.

What really pushed people to the brink was not anything else but really bread and butter issues. We are experiencing record inflation worldwide. Food prices and other basic commodities have gone up like crazy. The recent bizarre weather internationally has not helped things. Floods , droughts and hurricanes have disrupted wheat, rubber, coal and other essential necessities.

What worries me is not anything else but the repercussion. Egypt and Tunisia by themselves have little bearing on world economies but imagine if you are the rulers of the rest of the Middle Eastern countries. They are all doing the same thing now, fighting for their own survival. How? Very simple, lots and lots of subsidies. They are now giving money to their people to quell their dissatisfaction.

Imagine what will happen to food and other prices if the avalanche of oil money enters the market to buy commodities already pushed up by Chinese money. Such a scenario will further make the inflation situation even worse. I have been inflation proofing the group’s portfolio. I will be sharing with you, my dear investment comrades, on what I am doing at the upcoming Asian Titan Trends.

Apologies in advance that the first session is strictly for the first 500 students only as we have capacity constraints.

Till then, Gong Xi Fa Cai!

Your Friend,
Andy Ong