calvintaneng

A VERY GOOD MORNING FROM CALVIN TAN OF SINGAPORE

There Are Pointers Here From Up Coming Events

China's Next 5 Year Plans Will Be Good For Malaysia. China is one of the rare countries still with huge cash reserves. And when China stimulates its economy with new fire power - the surrounding nations of South-east Asian Nations should feel the warmth.

While both Europe & Japan are trying to weaken their currencies to spur exports the US is in an unenviable position of having to raise interest rates. This will be a disaster for US exports.

Imagine people putting on warm clothes and blankets for winter while US is taking away the blankets. US is shooting itself on the feet by raising interest rates in a time of decelerating growth. As such funds will flee US for other better opportunities.

The Call to Buy Gold?
Buy a little gold as a form of insurance. Buy gold as a form of protection is ok but buying gold as a form of investment is a definite no, no.

Invest in Cash?

Keeping 3 to 6 months Cash for Emergencies is perfectly all right. But Cash as an investment itself is a no no. At even 4.5% FDs keeping Cash in bank is still a losing proposition. Why?

GST at 6% already negated 4.5% interest rates. Plus continuing imported inflation due to weak ringgit will erode cash value further. So keeping cash in this environment is a negative enterprise. What then?

Buy A Basket of Value Shares in KLSE as KLSE has dropped by more than 40% in US Dollar term. With So Much Real & Artificially Printed Monies Sloshing Around the World Looking for Yield It Is Only A Matter of Time Foreign Funds Return Back to Malaysia with 5% Growth (US, Europe & Japan have zero to a tepid 2% growth at best)

THE UP COMING TPP (Trans Pacific Partnership)

The most prominent group that encourages TPP is none other than AMCHAM or American Chamber of Commerce. These American Big Shots are calling for Malaysia to be included in TPP is for the advantage of exporting US Manufactured goods from Malaysia to USA, Canada, Mexico, Australia, Japan & others. TPP will accelerate growth in Vietnam by 11% & Malaysia by 5% (these are the Top 2 beneficiaries of TPP). Some companies that will benefit from TPP in Vietnam are Pohuat (got furniture factory in Vietnam) White Horse (got tiles factory) MWE (got textiles factory)

There is a warped perception that when US increase interest rates - ringgit will be hit further and KLSE will do badly. Far from it - if US Dollar should grow stronger all Malaysian exporting companies in US denominated currency will make even more money - and in turn KLSE should power upward. Hooray!

As December months are always slow months due to Fund Managers taking year end holidays & Us investors selling down to claim back loss taxes this is the best of time to buy KLSE on weakness.

Calvin Tan Research called for a Buy of Ringgit

A Strong Buy on all Undervalue Shares of KLSE

And All Landed Properties like Single or Double Storey houses & Industrial Lands & Factories in the Booming Iskandar Region

Last year Calvin's motto was "Return Of Capital more important than Return On Capital"

Since Return Of Capital from Bank FDs is still a negative overall at 4.5% interest it is better to put money into undervalue KLSE stocks with Growth Potential exceeding inflation rate to PROTECT FROM THE EROSION OF WEALTH


Regards,

Calvin Tan
Jurong West,
Republic of Singapore December 14th, 2015 ( 8am Singapore Time}

2015-12-14 08:06