Testing Support

24 July 2021

Dear Fellow Investor,

Testing Support

EWM, the Malaysia country fund traded on the NYSE is testing November 2020 weekly support.   This index consists of blue chip index shares such as Maybank,  Tenaga, Genting and Digi and is a good representation of the Malaysian stock market. Despite the extreme negative market sentiment the index is holding steady with low volume.  Low volume means there is not much interest in the market and no panic liquidation by professionals.   

My advice is to stay the course with your quality index linked,  export  and  technology related shares. Enjoy the dividends.

We will also reap the dividends of the vaccine rollout. Malaysia has the highest pace of vaccinations in the region   according to today’s Edge page 14 report.  A Bloomberg commentator this morning mentioned that the human spirit will overcome the virus. It took less than a year to come up with  effective vaccines which in part was made possible by advanced technology and operation warp speed by Donald Trump.  Malaysia is now administering over 410,000 shots a day compared to 170,000 a month ago. This is a warp speed rollout and could be one  reason the KLSE is not collapsing.   

This is the path to herd immunity and a normal economy. Hong Kong now allows  full capacity in restaurants with fully vaccinated staff and vaccinated customers . Singapore now allows groups of up to 5 for dine in. Customers must prove they have been vaccinated.  This could happen in Malaysia.

Keep safe

Bill

Thank God for free markets and capitalism. That is what will pull us out of the health crises and economic slump.