25 Sept 2020
Dear Fellow Investor,
As we approach the 4 November election in the US expect more fighting and bickering between the politicians of both major parties. Mixed in with the political fighting are the demonstrations, riots, civil unrest, Covid lockdowns, China trade war and on a positive note the possibility of fiscal stimulus. The uncertainty has effected world stock markets.
If there is agreement for fiscal stimulus, that would remove a major uncertainty in world stock markets and that could be the catalyst for recovery. The other recovery catalyst could be a Covid vaccine.
Major progress was announced yesterday by Johnson & Johnson that they have launched 3rd stage clinical trials to 60,000 volunteers. Several other major pharmaceutical companies including Sinopharm have also launched 3rd stage trials. Should a trial prove successful expect a massive share recovery on the day of the announcement.
Weekly Dow Jones with a 50 day weekly moving average
The recent Dow correction although painful for momentum and short term players has held the 50 week moving average which is a traditional support area for strong hand investors and institutions. The Nasdaq also is showing support at the 50 week moving average.
Malaysia continues to suffer from the political virus but has the Covid virus under control. Business continues to return to normal . The PM has done an excellent job on the Covid and hopefully can solve the political virus.
Our plantation and tech shares continue to perform.
We will hold a zoom briefing this Saturday at 11 am. I sent out a survey yesterday and would appreciate letting me know your preferences as far as time/ date/ agenda.
Take care
Bill
A herd of cows which produce milk for Vinamilk, a blue chip Vietnamese share. Major shareholder is F & N.
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