Trade War Concerns

2 Nov 2019

Dear Fellow Investor,

Good News

Trade war concerns are getting resolved. US markets are advancing on better than expected earnings and positive employment numbers.

Asian markets are being supported by a weakening US Dollar and a resurgence in commodity markets.

 

Despite the riots in Hong Kong the EWH, the exchange traded HK tracker fund traded in New York advanced strongly on Friday signalling that the worst may be over in Hong Kong.   

The EWS and  EWM, the Singapore and Malaysia tracker funds also had strong up moves Friday.

Based on the Bloomberg short sale report, large hedge funds are covering their long term shorts betting that Asian markets have stabilized. This can be fuel for more up side.

With low interest rates, quantitative  easing and loose monetary policy money is flowing back into Asian equities.

Expect this to continue.   

Look for quality shares that have been beaten down to value levels.  If they pay dividends that is all the better so that you can be paid while you wait.

For those income seekers quality Reits are still OK  Make sure the Reit you invest in has a strong sponsor and preferable trading at less than book value.

Last week I profiled Well call, a maker of rubber hoses
They are financially sound and benefit from a focused management with a world wide distribution network for their rubber hoses.   

As a family business, some of you asked me if they have a succession plan. They do. The daughter of the CEO is a lawyer and drives the marketing while the son is a chemist and heads  R & D. They are the successors.  

Invest well and grow your wealth
Bill

Critter of the week is Conan, the hero Belgian Malianois  dog which helped capture and kill   ISIS head Abu Bakr al Baghdadi  Donald Trump has invited him to the White House, perhaps to give him a steak bone.