30 Nov 2019
Dear Fellow Investor,
Today, I attended a briefing by Phillip strategist Mr Phua Lee Kirk. He just returned from a one week trip to Hong Kong where he met analysts, government officials and fund managers.
He shared a number of photos which showed that the worst of the riots and violence has calmed. It showed that the news flow from the BBC and CNN is not giving a true picture of the real situation in Hong Kong. Hong Kong is presently safe to travel and do business.
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| Pop star Joey Yung Cho, posing with her fans on a Hong Kong street a few days ago. It seems peaceful-no tear gas *South China Morning Post. |
The majority of Hong Kong citizens do not want independence. They want a return to normality and business as usual.
His insights are quite useful as Hong Kong market volatility has been effecting Asian markets. High quality value shares in the Hang Seng are presently on offer. The same is true in Singapore, Malaysia and other Asian markets.
Asian markets have been hit by fears and uncertainty regarding the trade war and Hong Kong riots.
Mr Phua was advised by senior Hong Kong officials that trade war fears have been greatly exaggerated. China is rebating tariff collections to manufacturers and other effected businesses. Trump is doing the same such as in the US.
Farmers are getting tariff rebates. It means that in public and as reported by the media there are quarrels but behind the scenes calm has returned.
Not many factories are leaving China because of this rebate policy.
President Trump is a businessman and not an idealist. He will do what is good for business. Chairman Xi is the same. They both want to hold power. Prosperity is the key to holding power. Both the US and China can not afford a slowdown.
Mr Phua also made a case for interest rates world wide to remain low based on political reality. On the home front, that should support Reits. Best sectors moving forward are tech shares, automation, environment related shares such as solar power, cyber security, oil and gas, plantations and banking. There are many beaten down shares in these spaces.
Invest well and grow your wealth
Bill
Critter of the week
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Red panda at the Hong Kong zoo. It seems business as usual at the Hong Kong zoo. Perhaps this might be a good time to visit. Less crowds ?
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