Over the last few months, I was stop updating this blog. The reason is because I found that Malaysia stock market this year has no good news to share. Many of my favorite smallcap stocks have the downturn start from the beginning of this year. Exhibit below is some of my favorite stocks but most of them were not in my portfolio. Further I have disposed all my MAGNI shares last month.

Note: Ignored dividend returns

As most of the smallcap stocks have their fabulous year in 2017, the situation does not seem to be continued in this 2018. As a brief summary, most of the smallcap stocks are trending down is due to the following reasons:

1. Rising costs such as operational, raw materials, and other input costs
2. Appreciation of MYR against USD in the early of the year
3. Outflows of foreign funds from the emerging market included Malaysia stock market

Input costs for our local companies are expected to be trending upward as our new Government will raise the minimum wages. Further, I also expect Malaysia economic growth will slow down due to the latest tighter fiscal policy; many ongoing construction projects were either stopped or delayed. At the same time, the trade war between US and China will have negative impact to the global market. Malaysia could not be avoid as well.

I hope not but afraid of the economic recession might be around the corner. Finding a winner stock this year becomes a very tough job. In my personal opinion, the time of cash is king will return.

https://streetanalystblog.wordpress.com/2018/07/07/a-tough-year-for-malaysia-stock-investors-pickers/