Building A Base

4 Jan 2020

Dear Fellow Investors,

Building a base

Weekly chart of EWM, which is the ETF traded on the NYSE representing the KLSE index

Since October 2019, the KLSE has been forming a bottom. In November the 50 week moving average represented by the blue line stopped the advance and price fell back to form a double bottom. Last week price broke the moving average resistance and closed higher. The moving average resistance is  now support  Ringgit strength has supported the advance as well.

Could this mean foreign funds are returning ?  Time will tell.

Supporting the macro picture is the trend of US interest rates.

TLT which represents the 20 year US treasury bond as traded on the NASDAQ.

What happens with US long term interest rates will impact our investments in 2020.  As long as rates are low and stable our Hong Kong, Singapore and Malaysian portfolios  should perform. Low rates particularly benefit our REITS as well as our blue chip dividend shares.

The above chart reflects this scenario of low to stable interest rates.  Trump will stand for re election in November 2020.  To keep power he is motivated to keep rates low and this will benefit markets world wide. The resurgence of palm oil and crude oil are tailwinds that will benefit the KLSE.

On 7- 13  January Dolly and I will be visiting Perth for a short break. We plan to visit Newmont Gold, the world’s ;largest gold mine. Hopefully, Perth is not effected by the wild fires.

If you have any question please email me or account questions to Nora 03 2783 0300.

Invest well and grow your wealth
Bill

Critters of the week are rescued Koala bears from the Sydney Morning Herald  headline

Hero dog saves injured koalas from Australian bushfires Faye Brown Wednesday 20 Nov 2019