Bullish market for the next 12 months

16 Sept 2017-

Dear Fellow Investor,

My outlook for the next 12 months for the US markets is bullish.

Weekly Dow Jones up 470 points this week

The Dow Jones continues to make new highs and some of the bullish reasons include:

Trump’s willingness to compromise on social issues: 

This will get  liberal members of his own Republican party and the opposition Democrats to support tax cuts, raise  the debt ceiling and infrastructure spending.  

Corporate tax cuts will fund share buybacks and increased dividends. Buybacks increase earnings for existing shareholders.

Individual tax cuts will stimulate consumer spending which is good for business.

These are  the main bull points. So far since Trump was elected the Democrats and liberal Republicans have blocked him at almost every turn. They refused to repeal the Obama health care disaster and blocked/ obstructed many of his judicial/ cabinet  nominees .

The twin hurricane disasters forced the opposition’s hand to grant disaster relief.

Trump crossed the political aisle to forge an alliance with his political enemies to do the right thing. and release the disaster relief funds

I saw Trump on CNN in Florida directing the relief operation. He showed his focus and skills in construction and rebuilding.

Even the mainstream Trump hating media: CNN/ CNBC/
BBC/ Bloomberg could not find fault.

Florida and Texas are recovering much faster than expected and Trump’s approval ratings have jumped.

In my life I have never seen a US president with Trump’s building/ development skills. 

Most like the Clintons/ Obama/ Bush   were political  hacks, out of touch, corrupt, and self serving   

As the US markets represents about 60% of the world’s equity capital, this will benefit markets around the world including Hong Kong, China, Singapore and Malaysia.

I particularly like Singapore due to the extreme negative sentiment as well as, doom and gloom among the investment crowd. 

I read that  Singaporeans  are selling their shares out of fear of North Korea  starting a war.  This is absurd. It is bluster and hot air by Kim.  Russia/ China and the US will never let it happen. Bookmakers in London access the odds at 99.9 % there will be no war.

Extreme fear by the sheep is always a good buying opportunity especially when the odds favor you by 99.9 % of winning. 

Because of the negativity we can buy selected quality shares at a discount while enjoying healthy dividends.

The same is true for the KLSE especially selected quality mid cap shares trading at reasonable valuations.

Invest well and grow your wealth
Bill

One of my colleagues  at Phillip owns a similar cat. It is a rare leopard cat. She told me it is an expert rat catcher.