28 Sept 2019
Dear Fellow Investor,
The strongest sectors in the KLSE are presently the energy and technology sectors. Our only holding in energy is Dialog which is holding up well. The main revenue driver of Dialog is their tank farms which are used to store oil. This produces recurring revenue and makes money no matter the price of oil. Being integrated they also participate in down steam as well as upstream projects.
Our technology share is Inari. Inari is a play on Apple as they supply Apple components. As long as Apple performs, Inari will follow. Apple continues to make new highs.
The Group acquired Amertron Global Inc and changed name to Inari Amertron Berhad. The acquisition of Amertron Global added opto-electronics and fiber optic capabilities to the Group and manufacturing facilities in Malaysia (Penang and Johor Bahru), Philippines (Clark Field and Paranaque), and China (Kunshan).
Tim Cook and Donald Trump made a deal to exempt Apple from China tariffs so there is less uncertainty and the price has risen.
Other technology shares both in Malaysia and the US are also performing.
The chart below of the XLK, an ETF trading on the NYSE continues to uptrend The XLK represents the leading tech shares in the US. It includes semiconductor companies..
Weekly XLK representing US tech shares as well as Broadcom, an equipment maker which is a shareholder of Inari .
My view is that the market is anticipating a US China trade deal. Otherwise XLK would be trending down. The insiders of these tech companies know better than the talking heads on CNBC and the retail crowd.
The present gloom and fear overhanging Asian markets is now the Trump impeachment probe. Investors are afraid if Trump is removed from office stock markets world wide would collapse. CNN, BBC, CNBC and most of the media are beating the non stop impeachment/ recession drums.
It will never happen. For a US president to be impeached both houses of Congress must approve. The House of representatives are controlled by the opposition Democrats so they will probable impeach Trump but the Senate is controlled by Trump’s party, the Republicans. It takes a 2/3rd vote of the Senate to remove Trump from office.
Odds of Trump being removed are remote. This will never happen. For 3 years the opposition Democrats have obstructed the major issues such as infrastructure, immigration, health care reform, border wall, etc. Nothing is getting done. The voters are angry at the desperation and inaction of the Democrats. They can see through the lies, rumours and misinformation being presented as facts.
The Democrats will be punished by the voters in 2020.
As long as Trump is in charge expect higher stock prices world wide and I think the 50% of Americans who hold stocks via their pension plans and outright holdings understand this.
Invest well and grow your wealth,
Bill
Bill
Critter of the week is a rescued Sun Bear. For 7 years a prisoner and now free. The authorities should put the owner in a cage.
KUCHING, Sept 25 — In just less than 24 hours, the concern voiced by the public had managed to put pressure, forcing the authority to make a move to rescue a sun bear, allegedly locked-up under cruel condition at a house in Demak Laut here.
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