Smart money is buying while the uninformed emotional retailers have been heavy sellers.

3 March 2018

Dear Fellow Investors,

Dolly and I just returned from a relaxing one week holiday in Adelaide. Adelaide is laid back, uncrowded with many attractions including a world class zoo, interesting museums and friendly and honest locals.

My brother and his wife from the US joined us and he left his hand phone in an airport taxi on the way to our AirBB  The next morning my brother’s phone was returned by an honest driver.  

Our hostess had made  calls to the airport taxi operators and they messaged all their drivers.

The Australian economy is doing well. My shopping basket indicator which observes how much people are buying shows Coles supermarket customers have full baskets which include high quality cuts of meat, fish fruit and vegetables .  Australians are very health conscious and spend a lot on high quality food.

We got an objective view of the economy by visiting Phillip Securities who have an office in Adelaide. The office  is manned by an independent fund manager who has extensive knowledge of Australian shares.

He shared some valuable research on the resource sector and the market in general.

For Malaysians who have Phillip PGWA accounts, we can purchase quality shares in Australia without being subject to their high capital gains taxes.  Do call me if you want more information on this.

This can provide us with diversification into a strong AUD currency, a well managed economy and a strict regulatory environment.

Gut wrenching volatility and extreme emotions have dominated world market action in the last 2 weeks.

Smart money is buying while the uninformed emotional retailers have been heavy sellers.

Fears include a potential trade war initiated by Trump, higher interest rates and QT (quantitative tightening).

I am not concerned presently but should the smart money move to the sell side we must take preventive action.  Our shares are holding well. Our  shares are all solid value, low or no debt  and pay solid dividends. Our recent purchase of HL Bank is  of  the highest quality and will benefit from higher interest rates.

Invest well and grow your wealth,

Bill

Today’s critter is a greyhound we met in Gleneig  a seaside resort near Adelaide.

Australians love animals and this greyhound was adopted after having retired from racing.  Perhaps he under performed at the race track and the owner put him up for adoption ?