QEs strategy by all world center banks look generate some result lately. However, if the book is not balance. It will be a matter of time things will get burst.
We do not believe many securities house call for forward earning of 15 times as reasonable. This means current PE may traded at 17 – 20 times. It is always a probability game in the market. Given an anticipated inflation due to removal a subsidies. We believe 2014 is not going to be an outstanding year. KLCI may grow but not significant. Downward risk is much higher if any issue arises.
Our 2014 investment strategy remained the same. However, we added a criteria where part of our focus will be into weather change related.
1. Identify companies that will grow in global climate change.
2. Continue invest in agricultural and food related companies or its related supply chain.
3. Asset related investment as part of the portfolio or it’s related supply chain.
4 Reduce debt ratio and increase stable income.
5. PE 10 or lower will be the first criteria to reduce risk. If not fall into high growth industry that we like in climate change.
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