I got a discussion with a few colleague that ask me how i understand all these economic things eg, what is the credit crisis, what happen in 1987, how hot money affect us, why SGD is getting stronger and the other countries reduce interest rate, China is having inflation why invest in china??etc when even i am not a economic student.
Is abit hard to explain though, probably i am very interested in all these and i read up alot. As i dont really have a formal degree on these, i have to do lots of research on it. When you do research, usually you find lots of useless information. But this useless information can be link with other article and gradually form a picture and please infer more to form larger picture. I went for exchange where i took all finance modules, this is where i learn more and match all the things i learned together.
The key thing is get interested. This is how i know the fundamental on the macro side. Eg. Spore do not use interest rate to curb inflation, we use our SGD, while US, EU they use interest rate. The lower the interest rate it promote more lending and thus simulate the economy and eventually create inflation inwhich interest rate have to be raise to curb inflation and on and on. It is a cycle, like a sine wave.
If you wish to shorten the process, i recommend you read the 'Hard truth to keep Singapore going'. The interview with our MM. Awesome book. MM highlight all these in a few paragraph, he really is a database and lots of experience. He practically know everything,every details till the bit. He sum up the culture,tradition, history, economy and politic of US, EU, China, India etc. No doubt he is so much well respected around the world.
If you can, grab the book. Also please read lots of newspaper especially on the biz section. Because the real fundamental analysis is so broad, you need to know everything. I do not know lots of them, i admit i only know so little. The more you know will actually lead you to know what you dont know.Gd luck
