Trump policies are good for business and creating wealth world wide

2 April 2017

Dear Fellow Investor,

This has been a profitable quarter for our managed accounts. The STI has risen from 2898 from 1 Jan 2017 to 3175 or 9.1% to 31 March 2017 for an average return of 9.1%. The KLSE has risen from 1635 on 1 Jan 2017 to 1740 to 31 March 2017 for an average return of 6.1%

This bull rally has overcome marginal losses for the last 3 years and we are now in the money.  Never before since the KLSE inception in the early 1970s has the KLSE been down for 3 consecutive years. 2017 is on course to turn the tide. 

We can thank Donald Trump for this reversal. His policies are good for business and creating wealth world wide.

The biggest question you ask me is will this continue and if we are making sizeable profits should we book the profits ?

It depends on what shares you hold.  If your shares show evidence of declining sales and earnings, dividend cuts, high and increasing leverage, reduced cash flow and heavy insider selling the answer is yes. Take your profits and switch to something else that is more reasonably priced.

Rotate out of consensus favorites  trading at high multiples and switch into overlooked but lower priced solid businesses overlooked by the fund managers. Make sure they pay dividends and have  rising sustainable earnings and cash flows.

The Singapore STI is trading @ a trailing PE of 13 while Malaysia is at 18.6.

This compares with the S & P @ 29 and Nasdaq @ 31.  Value in the US is hard to find but it certainly exists in Hong Kong, Thailand, Singapore and Malaysia.

For those who are overweight Malaysian equities, I suggest you diversify into Hong Kong, Singapore, Thai shares with our PGWA account. We favor high quality dividend producing shares and a way to protect ourselves due to currency fluctuations.

Please call/ email me and I am happy to explain.

Invest well and grow your wealth,
Bill
012 685 1207