Resignation

Dear readers,

Start from now, this fakeconomist project is officially ended. Thank you for visiting the blog.
If you like, you can visit another place where shares the same information here.

See you again someday,

Capital Inflow

So here’s the update of the latest Indonesia capital market situation. JCI up to 21 April 2010 has gained 14.93% YTD, this made the P/E ratio up to 20.87, second largest after China CSI 300 (P/E 25.27). Meanwhile the IDR appreciate against USD to Rp9008/USD from Rp9447/USD at end of 2009. So what’s happening here?

Market Volatility

This writing is come up from two questions:
1. Does volatility increase through time?
2. If it does, what’s the reason?

We try to look at JCI, LQ45, and JII:

Standard Deviation

JCI or JII?

The common perception of Syaria equity investment is: safety and low risk. But is it true?

The fact is from 2001 – 2009, Syaria equity investment (which we use Jakarta Islamic Index/JII as proxy) 70% gave outperform return compared to the conventional one (Jakarta Composite Index/JCI). Only in 2004 and 2008 the JCI outperform JII. From the return point of view, JII seems attractive than JCI.