24 November 2018
Dear Fellow Investor,
I will share some views of Dr Chan of Share Investment Research in Singapore on 19 November 2018.
“Expect heightened volatility leading to Trump-Xi meeting next week.
“China just launched its inaugural China International Import Expo in Shanghai where Xi underscored the event as evidence to China’s desire to further open up its markets to foreign goods and services.
During a visit to Singapore China’s Vice President Wang Qishan also shared similar rhetoric, stating that China is ready for US talk on an acceptable trade solution.
Over the last few months China’s response to the US confrontation was to shore up its domestic economy. The intention is to engage in infrastructure development, reduce import tariffs and raise domestic consumption.
With a population of 1.3 billion citizens, China will in time be the largest consumer market in the world. China businesses are tapping into the growth of their middle class. As Asian businesses have a better understanding of Chinese culture and society they have a better chance in penetrating China’s promising markets.
Currently, China has the highest foreign reserves in the world after decades of amassing foreign assets, China with these financial reserves will withstand the US trade confrontation.”
As Dr Chan said there will be short term volatility but longer term markets should stabilize.
This will benefit our shareholdings which offer stable dividends, recurring revenue, low debt, reasonable valuations and the ability to leverage on the China consumption story.
Should there be a positive resolution between Trump and Xi next week expect a Christmas rally in world markets. If not there could still be a rally as all the trade war bad news appears to be priced in.
Invest well and grow your wealth
Bill
Bill
Today’ critter is the impressive Langkawi eagle guarding the port. Over the Christmas holidays we will take a holiday to Langkawi and visit the eagle sanctuary as well as other attractions.
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