Putting a tuxedo on a monkey does not change the fact it is a monkey.

28 May  2018

Dear Fellow Investor,

Despite the volatility last week our shares were not much affected. Over all our portfolio value increased.  Many of the GLCs and construction shares held by most funds and individuals were hit as foreign funds exited the market. We hold none of these shares.

On a positive note, the local institutions and retailers continue to absorb the foreign sellers. Last week over RM  1 billion was bought by retailers and 1.4 billion was bought by local institutions. This shows confidence in the new government by the locals.

Most of the bad news is coming out in the open as Dr M, the new sheriff in town  seeks out the truth and hunts down the crooks.

K9 Belgian shepherd catching a purse snatcher (not shown)

 

Healing takes time. Imagine if you fall into a drain and sprain your ankle. With proper care it should take  a few months to heal. If the body is strong, the healing will be faster. I know this from experience. While on holiday to Shanghai 3 years ago, I fell into a drain and twisted my ankle. The initial pain was intense but with acupuncture and soaking in a herbal solution, my ankle recovered. It took over 6 months to completely recover.  I think the Malaysian economy will recover faster because:  

The fundamentals of Malaysia are strong and with a free press, a parliament with more oversight and a more independent court, Malaysia will heal. Just give it time.   The PKR will demand it. We should see greater transparency and accountability. The truth and facts will come out.

 

Putting a tuxedo on a monkey does not change the fact it is a monkey. Now the facts are coming out and we will know the truth.

Cutting the GST on 1 June will immediately boost consumer spending and this will benefit our consumer shares. Mall traffic is picking up. Auto sales and travel related industries will be boosted. Finance shares will benefit as confidence builds. Even property might start to recover. Never underestimate the power of confidence.    

Invest well and grow your wealth,

Bill

Today’ critter is a Canada goose.  They are slow flyers but can travel 1000s of miles when they migrate.