Going forward into 2020

14 December 2019

Dear Fellow Investor,

Going forward into 2020

For the last 4 months the Bursa technology index has been consolidating its 1^st half gains. It has outperformed most sectors in 2019 and may have room for more gains in 2020.

The reasons include supply chains from US companies are relocating to Penang. Penang has the infrastructure, the networks and a trained workforce for the continued growth in the technology sector.

Malaysia is not in the crosshairs of the China US trade war  so this may be the reason supply chains are moving to Malaysia.

The KLSE is down 7.9 % year to date while the technology index is up over 23 %

Shares such as Inari who supply to Apple have done well.

Technology companies continue to grow as they disrupt most established industries. The US technology dominated Nasdaq is testing all time highs

Below is a weekly chart of the Nasdaq technology sector index. Despite all the rhetoric and volatility, it continues to move to new highs.    

Our analyst is now focusing on opportunities in the technology space. moving into the new year. This space is relatively immune to political infighting and currency fluctuations. Some have strong financials with low borrowings . Revenues are mostly in USD. They also supply some of the major companies such as Apple/ Microsoft/ Broadcom and Intel  which are reflected in the above chart.

Will keep you posted on our technology research project.

Invest well and grow your wealth,
Bill

Critter of the week is a kangaroo. We will be visiting Perth Australia over the New Year holiday and it is said there are more kangaroos there than human beings.