Oxstone Food for Thought – The Stock Market Roller Coaster Ride


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An eternal optimist, Liu-Yue built two social enterprises to help make the world a better place. Liu-Yue co-founded Oxstones Investment Club a searchable content platform and business tools for knowledge sharing and financial education. Oxstones.com also provides investors with direct access to U.S. commercial real estate opportunities and other alternative investments. In addition, Liu-Yue also co-founded Cute Brands a cause-oriented character brand management and brand licensing company that creates social awareness on global issues and societal challenges through character creations. Prior to his entrepreneurial endeavors, Liu-Yue worked as an Executive Associate at M&T Bank in the Structured Real Estate Finance Group where he worked with senior management on multiple bank-wide risk management projects. He also had a dual role as a commercial banker advising UHNWIs and family offices on investments, credit, and banking needs while focused on residential CRE, infrastructure development, and affordable housing projects. Prior to M&T, he held a number of positions in Latin American equities and bonds investment groups at SBC Warburg Dillon Read (Swiss Bank), OFFITBANK (the wealth management division of Wachovia Bank), and in small cap equities at Steinberg Priest Capital Management (family office). Liu-Yue has an MBA specializing in investment management and strategy from Georgetown University and a Bachelor of Science in Finance and Marketing from Stern School of Business at NYU. He also completed graduate studies in international management at the University of Oxford, Trinity College.

By Liu-Yue (Louie) Lam, Chief Investment Strategist, Oxstone Capital Management,    8/12/11

For the past few weeks stock markets around the world have shown extreme volatility. It will probably take some time before the markets settle down. So sit tight, and buckle up for more volatility ahead. One of my favorite investment gurus Jim Rogers once said, “I sell euphoria and buy panic.” Fear is opportunity. Conquer it and keep investing for the long term. Have a strategic asset allocation plan and stick with it. Leading economic indicators are not showing recession, just slower growth. This is a self inflicted political crisis. Expect the introduction of QE3 etc, and other monetary policy measures to support the markets. Global coordinated easing especially in the emerging market economies should provide additional stimulus. The current reduction in commodity prices including energy should act as a tax cut. The key question is whether the current extreme volatility and the temporary negative wealth effect of short term market declines enough to significantly impact our economic recovery? I think the U.S. economy is too large a ship to just change course so easily.



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