Recovery

 19 March 2022

Dear Fellow Investor,

Recovery.

          VIX Volatility Index measuring level of fear in the market.

The VIX measures the level of fear in the market. The higher the level the greater the fear. It measures the amount of options traded on the S & P Index.  Traders buy options to hedge as well as make large profits. When there is an extreme in the index it signals a potential reversal. That happened on 7 March when the VIX hit 36.2. The Dow and Nasdaq reversed and closed higher. The Hang Seng and most world markets closed higher. This happened in conjunction with an onslaught of bad news including Russia/ Ukraine war, Federal Reserve raising interest rates, inflation hitting new highs etc.  For the next few weeks as long as the VIX stays in the range the market should be stable and recover.

                

Foreign funds are returning to Malaysia to buy beaten up blue chip companies including banks and technology companies. For the last 8 weeks foreigners continue to buy Malaysian and Singapore shares.

 

The interest rate rise in the US was only 0.25 % which is a only a token amount and will not impact inflation or the agenda to inflate, print money and spend. This will boost inflation resistant stocks, commodities and metals which we hold.

 

Take care.

Bill    

                     Animals in Kiev zoo relocated to Poland