Username
Password
Forget Password?
  1. Indices
  2. Commodities
  3. Currencies
Straits Times 3,183.26 -22.20 -0.69%
Hang Seng 27,657.24 -130.37 -0.47%
Dow Jones 25,877.33 +197.43 +0.77%
Shanghai Composite 2,905.97 +35.36 +1.23%
Ray Barros – Why You Should Not Invest Now
Aspire, Thought Leaders | 15 June 2015
By: Vance Wong
Articles (74) Profile

Giving up his high-paying job as a lawyer, Ray Barros went into trading, his first love and dream. After years of making mistakes that almost every average trader without experience would make, Ray managed to successfully grasp a strategy that gave him a market edge.

In the upcoming Investor Wealth Summit, Ray will be speaking and sharing his experience as a hedge fund manager. He will be giving insights into how average investors can apply his strategies to their own portfolio. It does not matter how big your portfolio is, what matters is being consistent and sticking to your strategy, with a disciplined mindset.

Chief Concerns About World’s Stock Markets

Ray: There is a grand-daddy of a possible financial crisis brewing in the bonds and stock markets right now. The main problem is the unwinding of Quantitative Easing (QE). How the Feds will unwind the QE without severe adverse consequences is everyone’s guess.

We have trillions of dollars sitting in the banking system. As that liquidity finds its way into the economy, interest rates will rise. Even if we only return to the average zone, this would mean long-term maturity rates for bonds to be between eight and ten percent.

Looking at the long-term chart of the US rates, you can imagine the effect that rates at eight to ten percent would mean to the property market and stocks. Furthermore, we are seeing a small decline in stocks, at time of writing, just because the Feds may raise rates later in 2015. What would happen when rates are eventually up?

Invest Or Trade?

Ray: If not already invested, I would not initiate investments in property and stocks. And, as for gold, I would need to see a significant rise in inflation before buying. So, the short answer for investing is ‘no’.

As for trading, ‘yes’. I see great opportunities in seeking to go long on the US Dollar, while going short on bond futures. This is simply because bond futures are inverse to bond yields; when futures drop, yields go up.

Right Mindset For Current Climate

Ray: The right mindset for the current climate of low but possibly rising interest rates and low global growth is that of a ‘preservation-of-capital‘ trader. What I mean by that is there are actually amazing short-term trading opportunities right now.

There are opportunities that offer relatively low risk and high returns. However, if you are not at the stage where you can spot them, get an education and ensure that you are taking the right steps to protect your capital before trading.

My philosophy for trading (and hence my mindset) is about capital preservation, consistent execution of my Money and Method rules with a disciplined attitude, and only then, pursuit of superior returns.

Click here to register for your FREE seat at the Investor Wealth Summit 2015! Speakers include Ken Chee, Collin Seow, and many more!
Date: 20 & 21 June 2015 (Sat & Sun)
Time: 9:00am – 6:00pm
Venue: Suntec Singapore, Convention & Exhibition Centre (Room 324), 1 Raffles Boulevard, Singapore 039593
With a Communications background, Vance has the passion to write with a purpose - to provide content supported with substantial evidence to vested readers.

Please click here for more information about this author.


Join The Conversation
The Shares Investment editorial team welcomes constructive feedback on our coverage and content. We would also be delighted to answer any questions on the above article. Leave us a comment below, and we'll get back to you shortly!

All Rights Reserved. Pioneers & Leaders (Publishers) Pte Ltd. Best viewed with Mozilla Firefox 3.5 and above.