Investor Club Meeting

8 Feb 2020

Dear Fellow Investor,

Next Saturday from 10 to 12 am we are holding an investors club meeting at my office at Phillip Capital Mgt. Our analysts will be there to answer your questions on the shares we have been allocating to your portfolios or any other investment question you may have.   

Please let me know if you wish to attend.

I will give a brief macro outlook as to what is influencing our markets and what to expect moving forward.   

Today I attended a briefing by Phua Lee Kirk chief strategist of Phillip Capital Mgt.

The title of his talk was Virus may top out.

Phua showcased a chart from Google Trends gathered from data showing the media trend of news stories about the Corona virus over the last month. It shows media interest has dropped by over 50% from the panic highs. 

Google trends is a useful tool to measure economic trends which affect markets. It can help you to be on the right side of a trend and avoid buying a high when the crowd is chasing the market. It can also alert you when to buy before the crowd jumps in. It is free of charge and you can imput the variables you wish to measure.

The biggest problem of the Carona virus is the disruption of supply chains. This is affecting world market GDP.  What may alleviate the problem is that factories in Wuhan are due to reopen on 19 February. The CNY is over and people are going back to work.  Central banks around the world also have been lowering interest rates to support economies. Presidents Xi and Trump had a friendly  call 2 days ago.    At least for this problem they are finding common ground. The Corona virus problem does not benefit anyone. I, Google Trends and Mr Phua are optimistic that a solution will be found.

In the meantime we need to take advantage of beaten down quality shares.  We will share a few for you this Saturday.

Invest well and grow your wealth,

Bill

Critter of the week is the Democrat donkey. The donkey is the symbol of the opposition party in the US and Senator Romney who voted to remove Trump from office.  They failed.  It means Trump will most probably win the next election in November and that will be good for our investments.   Trump helped and supported Romney to win his election in Utah and then Romney turned around and stabbed Trump in the back. Benedict was a  traitor during the  revolution between the US and UK in 1776 when the US gained independence. Benedict was hanged for his traitorous actions.