29 October 2018
Dear Fellow Investor,
This Saturday we attended the Motley Fool Convention in Singapore. The most interesting speaker was the CIO of UOB Bank who is a value investor. She detailed why the current world correction led by the US is based more on fear than reality. Economies are doing well. Jobs are plentiful. Consumers are spending. Price inflation is still low. Interest rates are up but not by much and corporate earnings remain strong. Holiday season is approaching.
Even so investors are nervous and feel good conditions won’t last. Corporate earnings may drop, the Trump trade war will worsen and interest rates are due to rise. There is also a worry that the 10 year world bull has peaked.
All that matters is that reality will over come fear. It always does. If the economic expansion continues unabated, earnings remain high, the trade dispute with China is settled (as happened with Canada, US and Mexico ) prices will rebound.
South East Asian stocks offer attractive historical valuation particularly the quality dividend producers. They will follow the turn in sentiment from fear to reality.
Invest well and grow your wealth
Bill
Today’s image is an Air Asia plane. We experienced extreme turbulence and a violent wind storm as we approached KLIA. The highly skillful pilot almost landed. With only a few hundred feet of runway. The wing almost touched the ground. The pilot aborted the landing and we diverted to Langkawi . We were delayed several hours but at least we are safe. I did not mind paying the RM 4 charge for a small bottle of water.
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