Benefits of Trump and Abe agreed to start new trade and investment talk

11 February 2017

Dear Fellow Investor,

Over riding  fears in Asian markets since President Trump took power are the fear of trade wars, protectionism, war with China over islands in the Spratleys etc.

These are overblown and magnified by the fear mongering press.  Markets are wakening up to this.

On Friday it was announced that Trump and Abe agreed to start new trade and investment talks.  The Nikkei vaulted 471 points after the announcement. Trump is also planning a visit to Japan to meet Abe.

This could indirectly benefit Japanese operated companies in Malaysia/ Singapore.

The Shanghai index has been rising after the president’s daughter Ivanka was a guest at the Chinese embassy in Washington  as Bejing is aware of the need to build close contacts with his family and advisers.

Trump affirmed the one China policy which reversed his previous statements/actions on Taiwan.   

Trump being a businessman realized there was no profit in antagonizing China and Japan.

Unlike the Obama administration, Trump has no interest in other countries domestic affairs. He is only interested in building business.

Quality banks world wide are rising due to the anticipated roll back of the punishing  Dodd Frank regulations. This will free up capital for lending. I read in the Porter Stansbury report that  over 400 billion USD will be freed up.

This will also benefit financial and property development  stocks world wide.

It will also benefit infrastructure development, job creation and commodities. Bond rates are rising which signal inflation.   

Gold and silver are moving up which signal inflation.  

The Ringgit has stabilized as well as the KLSE. Foreign funds are slowly coming back.

Momentum is returning but be careful and focus on value.  

Value/ Momentum/ Quality/ Growth from Tim Price, The Price Report from Money Week in London.

Tim Price, one of the top fund managers in the world focuses on off the radar screen small/ mid cap low PE shares that offer value at a discounted price. In his book, Investing through the Looking Glass   he relates how he follows Warren Buffet methods in his search for opportunity.  

He takes the time to visit companies that are too small for large funds.  He wrote about a small, low profile Japanese electronics company in the Honshu mountains. He and his analyst team were welcomed with banners, dancers  and a banquet. The CEO said no investment house visited them in the last 6 years.  They were too small.

There is nothing stopping you from doing this method in Malaysia.  We do it.

Tim went against the consensus of the large fund managers. He invested and earned handsome returns over a 3 year period.

His fund trades all markets but is now focused on Japan, Vietnam and other Asian equities.    He has cut exposure in developed markets including Europe and the US as he says values in many cases are at an extreme.

Invest well and grow your wealth
Bill

Sharing the nut.  The squirrel and the birds both benefit. If the squirrel and the birds understand this concept I am sure Donald Trump also understands.