The big winner

 2 October 2020

Dear Fellow Investor,

The big winner of yesterday’s Trump/ Biden debate was economic stimulus.

No matter who wins the 3 November election, both political parties want stimulus which includes more debt, more spending and more bailouts.

This will be bearish the US dollar, bullish silver, gold and stocks.  It also has the potential to ignite inflation which is bullish for gold and commodities.

Asian stock markets will also be positively effected by US/ European and China stimulus.

Based on this scenario, continue to favour Malaysian technology, high quality consumer shares, selected plantation shares  and quality reits  for income.

Japan, Singapore and Hong Kong  markets should also benefit from the massive economic stimulus .  If Biden wins and he makes good on his promise to massively raise taxes and place restrictions on business, capital will flow to Asia where capital is treated better.  A drop in the US Dollar is the signal that capital is moving out of the US.

On a local alert our U Plant/ Kimloong shares went up this morning despite the US palm oil import ban on Felda products. As  our plantation companies we hold are well managed and treat their workers fairly, they are not effected by the import ban.

On Saturday, I will have a zoom broadcast starting at 11 AM. to discuss in more detail investment implications of the US election.  For those who can not attend will post a U Tube link.