Buy Malaysia & Singapore!

30 July 2016

Dear Fellow Investor,

Buy Malaysia and Singapore !

Despite the onslaught of negative news and pessimism, there is value in these 2 markets.

 

The price to book ratio of the KLCI vs the MSCI shows the Malaysian stock market trading at a substantial discount to the MSCI world index.   There are quality dividend paying shares which continue to reward shareholders with steady dividends and deal in the necessities of life such as telecommunication, consumer products and power assets.  

Insurance companies and state funds such as EPF with multi billions to invest support these   companies to provide decent retirement returns for their   members. Foreign investment funds are also slowly accumulating.  Retailers are still on the side lines paralyzed  by fear and the daily dose of negative news.

The same is true in Singapore. As noted by True Wealth publishing:  

·         The cyclically adjusted price-earnings ratio (CAPE) says Singapore is one of the cheapest markets in the world 

·         The price-to-book ratio (P/B) is at a level that has historically been followed by huge market gains 

·         The market’s dividend yield is one of the highest it’s ever been 

And there is a trump card. (Not Donald Trump but Gary Dorsch of Global Money Trends) This is the flooding of the world of helicopter money.

 

“Malaysia’s surprise rate-cut on July 13th, made it the 54th central bank to ease policy since the beginning of last year. Will Carney make The Bank of England the 55th? As Reuters reports, interest rates have never been lower, monetary policy has never been looser. A total of 54 central banks around the world have eased policy since the beginning of 2015 to boost growth, ward off deflation, or both. Expectations are certainly biased towards The BoE cutting rates, as the views of the eight colleagues on the BOE’s rate-setting panel become more clear. Chief Economist Andy Haldane favors a “sledgehammer” approach to stabilizing the economy in the wake of Britain’s decision to quit the European Union. "This monetary response, should be delivered promptly and muscularly.”

 

This trend of world money printing is to keep the game going and avoid a world recession.  Much of this money will flow into income producing dividend shares, gold, silver and commodities.

Invest well and grow your wealth,

Bill

This red eagle is from the Port Weld Eagle Sanctuary near Taiping, Perak.  It is interesting to watch the eagles  swoop down like  bullets  from the sky to catch   fish.   They are truly great hunters.  I keep a marble statue of an eagle on my desk to motivate me to find investment opportunities just like the eagles.