A value and income investor

9 March 2019

Dear Fellow Investor,

On Friday the Shanghai Index dropped 4.4 %.

The catalyst was a  call by  by Citic Securities to sell shares in Peoples Insurance  The sell call was like a depth charge to the market.  and panic selling of most shares worldwide resulted.

Machine traders controlled by artificial intelligence dominated the order flow  and virtually every market in the world was hit.

Regulators in China are concerned by the Shanghai  market bubble and were behind the sell call to cool things down. The authorities want a gradual market rise but not a buying frenzy.

There was follow thru selling in New York as the Dow, Nasdaq and S & P dropped sharply.  By  the close US markets closed flat erasing large losses. Sanity returned so expect Asian markets to recover next week.

That is why in a nut shell I am a value and income investor. Our Singapore and Malaysian shares are all well run businesses with earnings growth so why worry about a limit down drop in Peoples Insurance in Shanghai ? I never heard of this company.

Invest well and grow your wealth

Bill

Critters of the week are the beautiful birds in the KL bird park:

Whenever an overseas visitor comes to Malaysia I take them to the Kuala Lumpur bird park. It is the largest open air bird park in the world and the birds are friendly.