8 May 2016
Dear Fellow Investor,
Friday night’s headline
US employment numbers poured cold water on the interest rate rising
scenario contrary to the Bloomberg blue chip consensus of
investment houses led by the vampire squids Goldman Sachs and JP Morgan.
In the Last 3 weeks
all Asian markets have been under pressure due to fears of US interest
rate rises as the last time in December 2015 when the Federal Reserve raised
interest rates ¼ point world stock markets went into free fall losing
over 2.7 trillion USD in capital value.
Shock Headline on CNBC
The U.S. economy added
the fewest number of jobs in seven months in April and Americans dropped out of
the labour force in droves, signs of weakness that cast doubts on whether the
Federal Reserve will raise interest rates before the end of the year.
Before the release of the
numbers the Dow overnight futures were down more than 150 points as the
continued gloom and negative sentiment caused fear selling. After the
release gold jumped USD 23, the Dow/ NASDAQ went into positive territory and
the 10 year US treasury made new highs.
Based on the CME Fed
funds futures contract there is now less than a 6 % chance there will be a rate
rise on 23 June, the next FOMC meeting.
Our positions should do
well in the next few weeks. We stood our ground and did not get caught up in
the panic and fear mongering by the Vampire Squids, US Federal reserve
propaganda and media hype.
After all we buy only
high quality value shares with growing earnings, growing dividends and honest
managements. No need to worry. Using common sense as an example, why
would potential rising rates in the US effect our investment in PBA, the Penang
water authority whose only product is water, a recession proof commodity?
On Wednesday 11 May,
Dolly and I will be off to Taiwan for a 1 week holiday with Reliance Travel and
I hope to give you a positive report next Saturday or Sunday.
Should you have any
account queries please call Linda/ Nora or Idza @ 03 2783 0300. For
dealing you may call Steve/ Ashley/ Jeffrey or Richard who are Phillip fund
managers @ 03 2166 8099. You may email them
@ pcm-dealing@poems.com.my I will also check my emails in the evening
after we return to the hotel if you need assistance. You may email me @wermineb@gmail.com
I was told Taiwan has
very advanced internet, hand phone, Whatsapp coverage?
Below is something I
intuitively knew but never had the scientific facts to prove the point. It has
to do with stress and why observing trees will lower stress.
People relax behind a Japanese blooming
cherry tree at the horticultural exhibition '
Trees helps people become less
stressed - and the effect increases the more trees are visible.
A new study by
researchers at University of Illinois has confirmed the long-held understanding
that natural scenery can be a useful tool in helping reduce psychological
stress.
Invest well and grow your wealth,
Bill
For previous letters which are in a much better format you may visit my Eagle Investors blog asianequity.blogspot.com Linda will post this letter on Sunday
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