2016 is over!   New Year of 2017 is here!!

These are some Pointers for Year 2017 (everyone thinks this is a tough year. Not so tough if you are in the know)

1) CRUDE OIL

Crude oil is supported by both Opec & non-Opec oil exporting nations as a reactive move to Trump's deglobalization. Will this hold? Must watch shale oil guys carefully to see Crude Oil direction. If sustained then good for Malaysia & the ringgit.

2) PALM OIL

El Nino has caused shortages and price of CPO crossed Rm3,000. Good for Malaysia and ringgit if prices can maintain. Looks like La Nina will be very good for all Oil Palm counters. Govt imposing tax on Oil Palm will support ringgit. Plus 6% GST Ringgit is well supported. 

3) SUPER COMPETITIVE ECONOMY OF MALAYSIA DUE TO WEAK RINGGIT

Weak ringgit will benefit exporting companies. Trump's tariff might impact on exports to USA. But weak ringgit also benefit exporting to the whole world as Malaysia becomes Super Competitive!

4)WEAK RINGGIT BRINGS INBOUND TOURISTS TO MALAYSIA

One Johor Buddy spent 2 weeks in Thailand travelling all over Thailand by car.  Dining out is more expensive now in Thailand than Malaysia as Ringgit has crashed by almost 30% against Thai Bath.

Singaporeans are making bee line into Iskandar for shopping & tours as One Sing Dollar now equals Rm3.10

5) MY 2ND HOME PROGRAMME WILL ATTRACT MORE PEOPLE TO MALAYSIA

Malaysia is World No. 4 Best Country for Retirement.  With such cheap ringgit expect more China Nationals & others  to move to Iskandar, Forest City & Malaysia as a whole.

6)Many KLSE Stocks are Beaten Down to Bargain Basement Levels. Many are at 52 weeks low. Some are at multi year lows.

Opportunity to bargain hunt slowly. Time to buy is when there is over powering fear.

7) Pm Najib is not Pm Badawi.

Last time Pm Badawi did not support the Market. And as a result BN lost 2/3 majority. At that KLSE crashed by 100 points & emergency trading halt for 1 hour was triggered. This round being GE14 KLSE will be supported by Funds. So downside should be limited by Govt Pump priming. Examples are Construction & Govt Linked stocks.

8) WILL MALAYSIA BENEFIT DUE TO NAJIB BEING GOLF BUDDY OF TRUMP?

Maybe yes or maybe no. At least Pm Najib is a friend of Trump. By the same token Putin's Russia's Index up more than 50% because Trump is friendly with Russia.

9) CHINA AS THE LENDER OF LAST RESORT

During 1997/8 crisis IMF was the lender of last resort with malicious policies like raising interest rate to worsen recession.

Now China is the Lender of Last Resort with benign investments which give crucial support in time of crisis.

10) WHAT WILL 2017 HOLD?

Will it be a good year? Or will it be a bad year for stocks. Future is unknown as a whole. But these are times where bargains at rock bottom prices emerge. So may all do your best homework and invest wisely

Good Luck

Cheers!

Calvin Tan