An extraordinary and abrupt change in Monetary Policy.

9 Feb 2019

Dear Fellow Investor,

Policy Shift •

The Fed’s latest FOMC meeting produced one of the most consequential shifts in Monetary Policy in the last few years. •

Rate hikes were put on hold. •

·       Quantitative Tightening is to be ended much sooner than was expected. •

·       And, a “Fundamental Decision” was made to change the way the Fed manages interest rates.

This was an extraordinary and abrupt change in Monetary Policy.

World wide markets began a V recovery  Short sellers were trapped as plunge protection teams came in to buy 1000s of index futures contracts to support the markets.

Even base metals are recovering as reflected in the DBB.

The DBB is the base metal index traded on the NYSE. It is made up of physical metals such as copper, zinc, aluminium, lead.  Since December 2018 it has made a 7 % recovery.

DBB traded on the NYSE is a  lead indicator of growth

How to escape the gut wrenching volatility and prosper.

Our process is simple, intuitive, and explainable. We buy companies run by people with track records of success, in industries and business models with a competitive advantage, bought at good prices, and we hold them for longer than most of our competition is willing to

This is Warren Buffet’s method and  is based on decades of evidence that show patience and competitive advantage combine for a high chance of investor success. 

Our local market and Singapore continue to congest but there is evidence of foreign funds slowly returning. Confidence is  rising but we need to be very selective in our dealings.

The US monetary policy shift should benefit our share investments.

Invest well and grow your wealth
Bill

Critter of the week is : The cheetah

by Ingo Gerlach -- and is captioned: "Cheetahs marking their territory in the grasslands of Masai Mara, Kenya."