Ah moi, according to the guest speakers, investors believe that China deliberately devalued the yuan to revive their faltering economies. It's fallacy because China is slowing down but not in danger of any recession.
The real reason is because China cannot afford to continue pegging the yuan at a certain rate and had to succumb to the huge market forces of yuan flight. When they did that the first time in Aug, they thought that it'll be enough hence they guided the market that there'll be no more but they did it again this month.
So, be prepared for currency wars though not a deliberately one by other emerging markets. Thus, expect prolonged weakening of regional currencies or at least until oil prices stabilize
It looks like export based and domestic construction companies benefiting from the slew of infra works (provided they are not cancelled - highly unlikely based on comments of a government think tank. Budget cuts expected to affect expenditure slash for all ministries instead) to be a safer bets for the year.
I am talking about currency war... you are talking about currency war.. but different outcomes
Currency war is all about trying to gain an edge in exporting by weakening ones currency....
I am saying thanks to AhJibKor.. he has given Malaysia a head start in the game.. unintentionally.. with his 1MDB... RM will not go down more.... but RMB will be going down more soon as China is going for a deliberate devaluation.. its manufacturing companies will come alive.. US is bracing for this prospect.. Malaysian companies no need??
Prices of export companies not toppish??
IMO... Malaysian export companies play is in the 35th minute of the 2nd half...
Mr k has bailed out already.. deliberately.. sneakily... quitely...
@icon, I'm a very unsophisticated speculator. I buy on chart breakouts and then a lazy check on its low PE and growing quarterly profits. Nothing spectacular. Thus, you can see me in some of the stocks you hold. I like that you give a wider perspective to your selections. Makes a better conviction
I think it's important how investors view this market panic which will determine their positions. Do they see it as a growth shock or recession? . SnP500 was trading around 15xPE prior to fall, and now it's around 13x.if you think it's a growth shock, then it's near buying levels based on historical growth multiples. If you think a recession is coming, then you wouldn't buy until at least another 10% fall. So, if what's your take?
@moi, currency war is a deliberate attempt to devalue to increase competitiveness. The problem now is structural. Genuine large and real outflows of yuan flight and China seems to be naive in dealing with this issue. You can try to Google effects of yuan devaluation on the US or the world
Since Phillips is a Refinery the fall of Oil Price means better profit margin. With cheap crude oil as feed stocks for refineries profits will accelerate upward!
Hmmm?
I got one very good stock which beneit the most from cheap oil.
Chart wise, the dow is not seeing capitulation volume compared to when in August but prices falling with consistently building volume. This could mean only 2 things, that we have not seen the lows yet or the market has priced this in hence no sudden shocks (as compared to august when china's action was a surprise move)
Either way, there's always a buying opportunity for good stocks, where one has priced a fair value of PE12 or ev/ebit of 12 fair value on their fav stocks. Maybe discount that to pe 8 or ev/ebit of 8to 10 should provide some good reference to start your buying
And... since export companies have benefited from the overly weak RM due to AhJibKors doing...
It is only fair that you all should help out AhJibKor with his headache from his 2016 Budget revision.... a 3% to 5% windfall tax on that extra profits that export companies made as they have benefited from the overly weak RM due to AhJibKors doing... is in order
I'm getting to believe what this investment guru Hu Li Yang mentioned, the storm is on it way https://youtu.be/WTxKH_wkfa0 . The rhythm is oil down, then share and property down.
Try to understand how the Economic cycle works, ride on the correct timing, invest in good property and good stocks at low, hold it, and sell at high. Be patience, wishing to be millionaire before 30
This article doesnt take shale bubble and lots of bad loans into account. If you are holding dollar, there isnt much investment option to choose from. So the media is right in the sense that they are talking in american perspective and dont give a fxxk to malaysian.
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 5887 views | 5 d ago
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New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
kakashit
1,472 posts
Posted by kakashit > 2016-01-16 10:11 | Report Abuse
0650hk lai lai lai