Fed Taper Announcement

 12 Feb 2022

Dear Fellow Investor,

The background

This chart is from the US Federal Reserve website. It shows that despite continual official announcements of interest rate rises, Fed tapering and ending economic stimulus the authorities continue to increase money printing, credit creation and push liquidity into the economy.  They talk about tightening but they are as loose as ever. Other central banks around the world have similar charts. This is the reason why inflation continues to rise especially in the US, the UK and Europe.

Despite the panic selling in the Dow and Nasdaq Friday on news that Russia will invade Ukraine, the Singapore, Malaysian, Japanese, China and Hong Kong country funds traded in New York were not much effected. Biden is anxious for a Russian conflict to boost his declining popularity and distract the public from his misguided economic policies.  It will give him and his political supporters the excuse to massively borrow and spend and reward the corrupt defense contractors. His supporters in the mainstream media are pushing the war narrative .

Crude oil closed at a new high Friday which is positive for Malaysia’s trade balance.  Gold and silver also caught a bid on safe haven demand.  Bitcoin fell marginally on US stock weakness  but did attract safe haven buying.   Russia is contemplating to make Bitcoin an official national currency to defend against possible US Dollar sanctions.

If you believe that Russia will not invade Ukraine a good bet is to buy the RTX, the Russia ETF country fund traded on the NYSE. It has been beaten down by war fears. The fund has mostly oil and commodity companies and pays a dividend of over 6 % Should Putin decide to not invade this ETF would fly. Based on a friend who is from Ukraine and operates a local computer/ investment business, he does not think Russia will invade.   His Russian/ Ukrainian network share the same sentiments.

The KLSE rose from 1519 on 27 January to 1578 last Friday on improving sentiment . Banks that are the backbone of our economy rose and technology shares stabilized. Oil and gas companies were well supported.  All we need is for borders to open up and infection rates to drop for consumers to spend more. My neighbor who is a computer hardware specialist is finally back to work after being unemployed for more than a 2 years. He is making a higher salary as demand for his skill has improved with the improving economy.   God has blessed him for his good fortune.     

Take care
Bill

This is why Biden wants a war with Russia. His ship is sinking.