Climbing the wall of worry

9 May 2020

Dear Fellow Investor,

Climbing the wall of worry

Weekly chart of the NASDAQ Technology sector index

Since  March at the height of the Corona virus panic technology shares have staged a V shaped recovery and are on course to test the highs.

In late February,  Neil  Furguson a UK government bio scientist and coronavirus  tzar   forecasted 4 million Americans would die from the virus as well as millions world wide. His statements accelerated the world share market panic. His dire forecasts were way off the mark but because CNN and the fake news media hyped his claims 24/7, billions were erased from world markets but have now partially recovered.

 Last week he was forced to resign in disgrace  for violating the UK MCO to visit his friend’s wife with whom he was having an affair. He advised social distancing and to stay locked up but as many government officials they make laws but appear to be above them. 

Locally there has been solid progress on the virus. The government is easing restrictions. Businesses are opening. Customer traffic is returning to the malls. Hari Raya is just around the corner.  The KLSE has stabilized.  The technology sector is the strongest sector and our Inari/Uchi  investments are finally recovering.   

Yes, there is a lot of worry in Malaysia and most of the world but in my opinion most of the bad news is discounted. The global economy is swimming in a sea of liquidity and as long term investors we need to look through the noise and not get caught up in the news cycle. We hold in Singapore Kepple Data Center Reit  which has done well for us. The latest annual report describes the potential of this sector and will report on it next week.  

Keep safe 

Bill

Critters of the week are the 3 newly born tiger cubs at the Taiping Zoo.  They are super rare as there is only estimated 300 Malayan tigers left in the wild.  We plan to visit them once the virus problem is solved.