10 November 2018
Dear Fellow Investor,
One major uncertainty has been removed that has effected markets worldwide. The US mid term elections are over and Trump’s pro growth low tax low regulation economic agenda will continue. The Dems were unable to flip the senate so it is impossible for them to impose their socialist anti business agenda.
In a vote of confidence in Trump’s pro business policies , Warren Buffet bought over USD 1 billion of (BERK.B) Berkshire company stock. We hold this stock for some of our PGWA accounts.
Many other company executives worldwide are heavily buying back their shares in the current world market correction.
On the local front there are a few positive signs amidst the cloud of doom.
Japan has extended a multi billion line of credit at just 0.62 interest rate. This will allow Malaysia to retire borrowing carrying an up to 10 % interest rate made by the previous government.
It shows Japan has confidence in a Malaysia recovery.
Anecdotal feedback from some of my business clients is positive for recovery. One client told me if BN had won he was planning to move his business to Vietnam. Now he will stay.
Dr M is draining the swamp. Every day the news reports authorities catching another swamp creature
A metaphor for what is happening in Malaysia is a farmer planting wheat in a barren field. With proper maintenance and rain, the wheat will grow and in time there will be a bountiful harvest. At first the progress is slow but in time green shoots will emerge.
Our value/ dividend investment strategy saved us in the 2007/ 2008 world market collapse when our share portfolios dropped over 28 %. Those who held on continued to collect dividends and our equity went on to new highs.
The situation in 2007/ 2008 was much worse: unemployment rising, recession, housing market collapse and fears of a possible depression. None of this is true now.
Invest well and grow your wealth
Bill
Critters of the week are the swamp creatures
No comments:
Post a Comment