If you were to ask me the timing, i really not sure how low the overall market will go for China market. It has been corrected sometimes. If you would like to buy low from China, do consider CIMBC25. The PE of Chinese banks, Telecoms, Energy are all at reasonable level now. Anyting below RM 0.840 is consider slowly nibbling opportunity.
In history of the universal as man kind understand. The universe is inflating at all time and it is accelerating faster then ever. Due to political practicaily, it is really hard to also force all facing the problem directly, So from US to Europe all are emphasizing on pushing the problem to the future.
As money become smaller, as you can see from most developed countries interest rate today. All are closing to zero and this means cost of borrowing is so low that yet we still struggle to revise things everywhere. I am not sure when it will happen but re-adjusting our portfolio to asset oriented investment is important. Well of course it can be commodities but we always do not like it due to timing. What does it gives you while you holding it when timing is not right yet? But yet, we should have a portfolio with Gold together but not major.
1. Property (only if good rental yield, dont go for speculation)
2. REITs (Potential Capital revaluation and stable yield across time)
3. Equities (that linked to commodities like Oil & Gas, agriculture)
4. Commodities (we still prefer Gold only)
5. Collection items (Something rare and may interest you)
As after a long week run up, we start to see it correct potentially as phase 1 and we believe second wave will come judging its volume and pattern. However, we favour to recover our cost of investment and let the balance grow.
QE3 effect may not be feel immediately. It is measure taken to avoid a double dip. We believe KLCI will stage a technical rebound but bias movement to below 1600 in short term. Sell stocks that dont give back yield and high PE.
FED announced additional QE3 measures. I personally do not think it has much impact except push backward a double dip and wait for something happen. But is is for sure, inflation is here again. FED is expecting low rate through 2015. In this case, QE4 may also become option soon. Buy Gold, Properties, REITs for asset revaluation soon.
After gone through the features of iphone 5, I have found it is not better or at least level with Samsung S3. Let’s not forget it is not few years back and today market is filled with competition. Apple does still has its own fans but we guess we do have reserve whether it can still create the same impact as it used to be. Though we still think iphone 5 is a good product but do need to wait and see I have coming months.
Base on RM 1.23 right issue, the yield is closing to 9% and we believe is a good yield to go ahead.
From the pass week of the downward pressure plus our earnings result analysis. We believe the market is correcting naturally plus pressure from both political front and weakness in China. No panic selling but keep calm before entering with bargain hunting nature.
We bought mildly again today. We have an opportunity to chat with one of the branch manager as i am lucky to be their customer as well. After talking to Poh Kong, Wah Chan and Tomei, we believe Tomei impressed me in term of knowledge and always thiking of the customer angle.
We also understand that most of their team members are happy. That is important and the family run business is still growing. We recommend further buy on Tomei as long as price is below RM 0.800.
At the price of RM 1.130, we believe Qcapita is still able to deliver more then 7%.