Expect volatility next week

25 March 2017

Dear Fellow Investor,

Expect volatility next week. Trump did not get his way to repeal Obama Care in a scheduled vote on Friday.  The perception among many investors is that the opposition joined by some of his own party may obstruct his promise to lower corporate and personal taxes. Even his promise to rebuild American infrastructure is  under threat.  

These are the reasons world markets have gone up as they anticipated an infrastructure boom and lower taxes.

The uncertainty of future policy will create volatility.

Washington D.C, as Trump said is a swamp of corruption filled with  double dealing, crooked, self serving politicians who stand in the way of progress. They care little for what’s good for America and the world but only care about themselves.

In my opinion, Trump will ultimately prevail.

He quickly cut his losses like any good businessman  on Obama care  and said he will focus on tax cuts and infrastructure spending.  Even crooked politicians will support tax cuts and infrastructure spending. This is always bullish for markets and especially commodities and hard assets.

As an investor I focus on long term unstoppable trends rather than the short term noise such as politics in the US.

Let us focus on huge, long-term secular global trends… unstoppable changes usually accompanied by shifts in demographics and technology that are set to fundamentally alter entire nations and industries. 

For example…  Asia  is set to have the largest elderly population by 2030. Plus, the middle class is booming. Those are two  reasons why we focus on the insurance industry as a major beneficiary of this trend. Another recent megatrend we identified lies in robotics and automation.

Every company we research we look for how they are using automation to increase profits.

Infrastructure spending is another unstoppable trend especially in India and China. This will support base metals such as copper, aluminium, lead, zinc etc. I am looking for growth opportunities in India and  Vietnam as well as under researched small cap opportunities  in Japan.

We need to look beyond the popular shares bought by most fund managers and the public. Look for opportunities away from the mainstream.

Invest Well and Grow Your Wealth
Bill