The gloves maniacal gloves rush

It is not a bad thing to have activities at this down time. However, excessive speculation turned become fundamental. If the top makers can justify this value but can all 2nd and 3rd liners? If one can remember 2nd board in 90s upto RM 100 and above. It proves that when there is a time without good governance. The dark forces can come back and history will repeat again.

We disposed all Bioalpha

From gloves to vaccines then pharmaceutical Companies. All being buy up even without too much of its fundamental. But as usual we do not chase High PE sticks thus we sold all at RM 0.36 average

Update: Our strategy as of now

We will continue to buy into undervalued stocks including finance, services, healthcare but slow buy on property and construction. Overall we believe post Covid will have a big rally expecting around 4th Quarter of the year 2020. Worldwide.

We will also encourage purchase of property of all criteria for still possible to rent out is solid or self stay. As property price will further increase. All due to the theory of money become smaller for sure.

Gold price is also evidence that at closing to historical peak soon. Unless the market clash but the QEs are never able to be repay.

We also reducing debts as a continue strategy to always achieve a balance of long term fund growth.

2nd wave looks like coming. Will it impact the market?

In the assumption of human already knows how it transfer. Basically it is not back to standard discipline. Will this really crash the world Market? I doubt so as the market is full of easy money. Both stocks and assets will do well. However careful to not over commit or investing in any over priced. You should have a great return in next 6 to 12 months.

We thought is an U but I think may be V

When debts cannot be repaid. The only scenario is to devalue currency. Bubble assets quickly forming V shape. 2021 will be a super bull. But you are not richer because everything become more expensive and money become smaller.

We have been net buyer of share but industry oriented

When during a crisis, bargain is there. However, risk is also equally spread. No on will no when the market is lowest and when is highest. It depends always your strategy, fund size and expected return.

We have been buying in the last two months. But also very industry oriented. We bought energy but trying less on oil and gas. We buying in direct stay home beneficiary which can be long time to come. We bought banks as we believed the current price fully reflected the impacts.

In overall, as strategy is continuous to invest in stocks but only dividend oriented and industry specific. We started to lower the amount in paying debts as interest is cheap now! We will hold on to property purchases. If a good deal available we may still proceed but will not be aggressive.

MCO in Malaysia – Possibly Astro and CIMB benefited

We see Netflix, Amazon, Alibaba, Lazada, Food Panda and Grab may did very well during the stay home order worldwide. But it is not easy to find a good one in Malaysia. Perhaps I may be wrong but I spent more time on Astro and bought some movies. Also used Touch and Go so often to buy food. So we think Astro and CIMB also worth to take on. We also bought some during this period.

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