The Birth of the Xpo Growth Fund 22/2/05. First and only blog issue

Sidenote * I created another Blog when the fund first started. However, after the first post, I did not have the inertia to carry on. Kudos to Brendan who restarted the blog. Now transferring from the old blog to the new blog. This is the exact first entry of the birth of the fund.

Price:
0.98932569

Average Returns:
-1.07%

Current Holdings:
100% DBS Enhanced Income

Intended switch
20% UOB Gold and General Fund
20% HSBC Chinese Growth

Rationale

UOB Gold and General Fund
-Widening US Trade deficit. No concrete plans from US to narrow it.
-Supply and Demand. Asian Banks holding much US treasuries. High chance it will be reduced
-10 days crosses 20 days averages.Cutting 50days soon. Strong support at $410. Now $420.

HSBC Chinese Growth
- Valuation attractive after 2004 correction
- Upwards looking trendline. Currently trading at the bottom of the trendline
- Potential Yuan/Dollar repeg. Strong pressure from Intl communities