Invest well and grow your wealth

14 Jan 2017

Dear Fellow Investor.

In 1989, the Berlin Wall fell. The Berlin Wall was torn down due to political changes in Europe; Soviet President Mikhail Gorbachev lost his control by 1990, and the Soviet Union fell apart.  The East Germans could now  travel West and be free


East and West Germany were then united and it was the beginning of business renaissance.
Prosperity and growth returned .  Germany is now a world class exporter and manufacturer.

25th anniversary  of the fall of the Berlin Wall

On Tuesday 8 November 2016, Donald Trump was elected to be the next US
president.  


Trump’s election  could be a the start of a business renaissance just like the fall of the Berlin Wall was the catalyst for the German business renaissance. East Germany was decaying and dying because of socialism, central planning and government intrusion into the private lives of the citizens.


The US and Europe have been going down the same road to socialism, entitlements, welfare, mass immigration, citizen control  and central planning. Obama and Hilary Clinton   were the standard bearers of this anti- business socialist path.


The voters have seen through their failed policies and have voted for change. The change is free markets, lower taxes, and elimination of business killing regulations.


Stock markets worldwide have reacted positively.  Stocks in Singapore and Malaysia have been picking up. Hong Kong has stabilized. Japan is now in a bull market.


It will not be a straight line up trend.  Expect volatility but in my opinion the trend has turned.  The US markets are beginning to top out as the euphoria abates.


Locally, Bank Negara has introduced measures to stabilize the ringgit. Foreign funds are slowly coming back. The panic has subsided. Volume has picked up.


There will be headwinds. Some include possible higher interest rates, inflation, currency pressures, trade wars and commodity price recovery.

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We have been adding into our positions with selected export and commodity related shares which can benefit from these headwinds.  We are now about 80 % invested.

On a side note: I use the IVSA share filtering platform which identifies signs of strength and signs of weakness for shares.  For the last 2 ½ years there are have been more signs of weakness and very few signs of strength but lately we are seeing a reversal in the signals. More green buy signals are appearing.

Invest well and grow your wealth,

Bill

A Baby Koala Clings To His Mother While She Undergoes Surgery.   Lizzy the koala was taken to a wildlife hospital in an Australian zoo, with her son holding on to her side. Poor Lizzy had been hit by a car. Her little boy, Phantom, only 6-months-old, was luckily unharmed and screamed when they tried to remove him from his mother, so they just let him be.