24 April 2021
Dear Fellow Investor,
Last Tuesday Joe Biden announced his timeline for instituting massive tax rises on corporations and individuals. These he said are necessary to pay for his infrastructure programs, stimulus programs, higher unemployment compensation , increased welfare payments, open border policies and a wave of free money to politically favoured supporters.
As he spoke the Dow Jones dropped over 400 points while the Nasdaq took a 350 point hit . European markets dropped while overnight futures signalled a bloodbath in Asia. US T bonds dropped signalling higher interest rates. Gold, crude oil, most commodities rose while bitcoin fell.
On Wednesday morning there was a kneejerk reaction to the Wall St panic but our diversified portfolios of high quality shares while marginally down weathered the storm.
In fact our core Singapore holdings of OCBC Bank, Parkway Life, Sheng Seong Super Markets and Kepple DC Reit actually closed flat to up on the day. Our Malaysian shares also held steady. Our core IT stocks such as Inari and Pentamaster did not fall. Our plantation stocks, UPlant and Kim Loong went up while Public Bank and Genting Malaysia slightly fell.
The price action was a classic slightly bullish to neutral reaction to negative news. I would not turn bearish toward Asia, US or Malaysia based on this negative news event.
Practically speaking Joe Biden is not a king and to pass his tax bills into law he must get the congress to approve. Because he has razor thin majorities in congress, he will have to compromise so in my opinion the radical socialist wealth distribution proposals will be watered down. Most US senators and congressmen are not socialists and are multi millionaires with vast wealth so I do not think they will agree to have a portion of their wealth confiscated. At least that is what the market thinks based on price action.
Next week, I intend to share my views on bitcoin and how to play it safely. On Friday a bitcoin exchange in Turkey collapsed with losses in excess of 5 billion USD with over 350,000 investors potentially wiped out. The CEO of the exchange absconded to Albania. One safe way to play is to deal in bitcoin ETFs which trade on the NYSE . You may lose by trading but never by fraud or theft. In over 150 years the NYSE has never defaulted as your funds are protected by the member companies of the exchange. My company Phillip can deal via your PGWA account, so if interested and you want to sleep at night give me a call.
Keep safe
Bill
Here is something worth visiting. There are only a few hundred left in Malaysia.
Country’s first tapir conservation centre will be in Jelebu
A juvenile tapir in Zoo Negara, with World Tapir Day being celebrated to instill greater concern and protection for this endangered species - Photo courtesy of Malaysian Nature Society.
SEREMBAN: Malaysia’s first tapir conservation centre will be built at the Kenaboi Forest Reserve/State Park, Jelebu in Negri Sembilan, said Wildlife and National Parks Department (Perhilitan) state director Wan Mat Wan Harun.
“The rationale behind it is Perhilitan hasn’t got a dedicated conservation centre for a comprehensive tapir treatment, rehabilitation and breeding programme despite the rising number of the animals being rescued every yea
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