Achieving the highest probability of success in money and life

TWO weeks ago, I was once again in Guangzhou. Besides meeting government officials, I had the opportunity to spend time in several Chinese financial institutions to share how advice should be given.

Coincidentally, I arrived in the city on Oct 8, when Chinese stocks rose 5.9 per cent as if to welcome me. The rise was fuelled by the government’s pledge of fiscal stimulus. Because Chinese markets have suffered a three-year drought, financial institutions were busily putting in trades for investors who did not want to miss this rally, convinced that the rebound was finally happening.

At lunch the next day, one of the guests said that he had overheard a group of “aunties” at breakfast, discussing the stock markets. After a lot of chatter, one of them concluded the discussion with a serious message – that they were to take their savings to buy into the markets that same day and by a certain time. With that, they quickly departed.