First of all, i think for the past 2.5 months everyone is enjoying a fruitful return from Bursa market. Same go for my subcribers as well, although we are very optimistis about the KLCI market. There is still some risk that we need to beware.
What are the risk is waiting ahead us?
There is 2 risk is waiting us during the month of Mar 2019.
RISK 1 : US - CHINA TRADE WAR
The US and China have until March 1 to secure a trade deal which would "assure the protection of US technology" and "get additional market access" to US companies, US Trade Representatives Robert Lighthizer said Sunday.
If the deal is not reached, the US is set to raise tariffs on $200 billion (€176 billion) of Chinese goods from 10 to 25 percent.
Source obtain from https://www.dw.com/en/us-sets-hard-deadline-for-china-trade-talks/a-46658702
So, how severe is the impact. No one can tell, but if the talk never go on smoontly, definitely everyone will be hurt due to this incidient which is for sure.
Now, this is the latest update of the development from the online information.
Donald Trump’s declaration—the second in a week—that he’s willing to suspend his March 1 deadline for slapping higher tariffs on $200 billion in U.S. imports from China if trade negotiators from the two countries move closer to a deal.
“It’s going extremely well,” Trump told reporters at the White House yesterday. “Who knows what (that) means because it only matters if we get it done. But we’re very much working very closely with China and President Xi, who I respect a lot, very good relationship that we have, and we’re a lot closer than we ever were in this country with having a real trade deal.”
Source obtain from http://fortune.com/2019/02/16/the-endless-ping-pong-of-u-s-china-trade-talks/
Currently, Donald Trumph now is considering 60 days extension for the TRADE WAR DISUCCSION. Therefore, market is react optimistic. Anyway, Donald Trumph has proven himself as a good negotiator and act like a business men.
Personally, I think market has perceive this toward positive outcome but we should not neglect of the possible risk if negotiation not going on smoothly as we can see HUAWEI issues is getting hotter day by day in the international level.
On top of that, BREXIT issue also trigger many uncertainty in the market. Therefore, if you check it out GOLD price chart, it is trending upward. Gold alway work as a tool for hedging against the risk of the portfolio investment.
UK Brexit Secretary Stephen Barclay is to brief the Cabinet on his latest talks with Brussels amid continuing deadlock over the backstop.
Mr Barclay was said to have had a “productive” discussion with the EU’s chief negotiator Michel Barnier in the Belgian capital on Monday.
However, it appeared that they were no closer to resolving the fraught issue of the backstop – intended to ensure there is no hard border on the island of Ireland – which remains the main stumbling block to an agreement.
The UK's Department for Exiting the EU (DExEU) confirmed they discussed the so-called “Malthouse compromise” being worked on by Tory MPs in the Alternative Arrangements Working Group
Source obtain from https://www.irishexaminer.com/breakingnews/world/barclay-to-brief-british-cabinet-on-latest-brexit-negotiations-905464.html
The due date of this event fall on 29 Mar 2019.
What are impact of UK exit from EU?
A hard Brexit without a trade agreement would eliminate Britain's tariff-free trade status with the other EU members. Tariffs would raise the cost of exports. That would hurt exporters as their goods became higher-priced in Europe.
Even with a trade agreement, a hard Brexit could be disastrous for The City, the U.K.'s financial center. Companies would no longer use it as an English-speaking entry into the EU economy. The City of London reported that 5,000 jobs could be lost. That could lead to a real estate collapse. There are many new office buildings under construction that would sit empty. Housing prices have already started to fall
So, basically LONDON unlikely become the central of financial hub of investment under the EU. Financial market may be affected as foreign fund will pull out from UK. Real Estate price start dropping.
Source obtain from https://www.thebalance.com/brexit-consequences-4062999
How severe is the property price in UK?
Do read up this article for your own good.
https://www.theguardian.com/money/2019/jan/17/uk-house-prices-fall-at-fastest-rate-in-six-years-on-back-of-brexit-rics
At the end of this article, i wish everyone do take precautious and locking some profit to be at safe side. That all the message i want to deliver to fellow readers.
Disclaimer : Above is for educational sharing purpose. Kindly consult your dealer/remisier for any investment decision. Trade at your own risk.
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WTF! STUPID ARTICLE to scared ppl only!
2019-02-20 13:39