Let’s move on and focus on the future.

21 May  2018

Dear Fellow Investor,

As mentioned in last week’s election report my forecast for our equity holdings was positive and since DR M won the election the result was positive for our shares. They all went up.

That is the past so let’s move on and focus  on the future.

The Background

The background world wide is rising interest rates, rising synchronized world growth and rising inflation.

The chart represents the 20 year short US T Bond. It is in an uptrend as price is trading above the 50 day weekly moving average. It shows that interest rates are rising.

As interest rates in the US rise, the price of this fund rises. This ETF is significant as the 20 year T Bond is the benchmark for interest rates world wide.

TBF Pro Shares  Short 20 Year US T Bonds

In addition to rising interest rates, the world is experiencing synchronized growth and rising inflation.

This will benefit our banking stocks both in Malaysia, Singapore and Hong Kong.

It means net interest margins are rising as well as well as net interest income. These are the 2 metrics banking analysts follow.

I feel very positive for our shares and Malaysia moving forward. The sentiment because of the election results has dramatically shifted. Most Malaysians are smiling – even the taxi man.

I will be buying more banking and value shares for our clients and myself.

Invest well and grow your wealth

Bill

Today’s critter is a polar bear from the arctic. A few months ago we visited a museum in Lankawi in which there were a collection of live arctic animals brought in by Dr M for the benefit of the people. I remember a  polar bear about 12 feet tall.