I am surprised that investors think the bear is over, just as the Dow Jones index rose 1,500 points since Nov 21. This seems obviously just a speculation-driven rebound, with no basis in economic value; this is not based on my hindsight, it’s based on the current economic condition and the financial stability and indicators seen within the companies involved in the biggest market movements. As I have always emphasized a very important factor that investors would often overlook - we should focus on the fundamentals of a company, a variable which is constantly moved by economic trends - with exceptions for those which fall out of cyclical market trends.

So what now? Now that the reports are coming out, and the results are looking to be unimpressive, the market begins dropping like mad. However, for those who have spare cash available, it’s still an opportunity for you to make long-term purchases. I have been receiving a lot of inquires regarding to the performance of oil, I can only state the fact that it is definitely essential to the contemporary world. Although the US dollars and the price of gold do have an impact on the price of oil, I would advise investors to pay close attention to the demand instead of other factors. If we need it, we will buy it; although there are more electric cars than 10 years ago, Obama is trying hard to lower oil prices by going green and pulling down demand, and a number of other variables are dragging the price down dramatically, the global supply and demand of crude is the important factor, not that of national political-economic decisions.

My advice for today to investors is that they must remember that market noises are there for a reason, and the reason is to deceive investors’ intuition.

This marks the beginning of Benny Wong’s investment strategies and market watch column on Politonomist.com, a weekly column done by investment and finance specialist and personal investor, Benny Wong.

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