2 Feb 2019
Dear Fellow Investor,
A lead indicator for a positive result of the US/ China trade war
XLK weekly price chart The XLK is an ETF of technology shares traded on the NYSE
The XLK has many major technology shares including Apple, Intel, Cisco and Qualcom. Most of the shares in the XLK have exposure to China. Apple has major exposure.
Because the XLK is trending up for the last 7 weeks, it means smart money is betting on a positive result of the China/ US trade talks.
The US interest rate outlook is also turning dovish as evidenced by softening in the US Dollar index.
If smart money thought that US interest rates would be raised the US Dollar index would be strengthening and shares would be dropping..
Smart money is professional money such as, Warren Buffet, Howard Marks, Bill Gross or Ray Dalio.
They have the inside track to Federal Reserve policies and political moves by Trump and Xi .
On the local front, the Warren Buffet of Asia, Cheah, Cheng Hye chairman of Value Partners plans to raise RM 2 billion this year for investing in Malaysia. His partner says in a Star interview Saturday Malaysia this year offers value .because of the refreshing improvement in governance and transparency.
Singapore should also see a boost as this is the 200th anniversary of its founding in 1819 and a planned parliamentary election next year. Singapore politicians will stimulate the economy to get votes.
I wish all of you a happy and prosperous Chinese New year and be mindful driving back to your loved ones this holiday.
Bill
Critter of the week is the fluffy panda Xing Xing at Negara Zoo. We went yesterday and there was no crowd so we were able to get a close up view. :
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