Cash is king when world interest at low for long?

With World banks maintain interest rates at ultra low for long period to come.  Is cash still king even inflation at modest rate?  The current environment promote equities but we believe eventually benefits to asset oriented investment for years to come.  No matter there is a crisis or no crisis.  Cash is no long valid and in fact depends on which country are you living in.  We believe quality growth stocks, REITs, properties, commodities and may be even a valuable collections are much better than cash.  The longer interest stay low, more ratio of our investment will switch from equities to others portfolio to reduce risk.

MBSB poor quarter but is still cheal

MBSB announced its poor quarterly result due to impairment of new rules.  But to us it is still a very attractive counter.  With the current market price of RM 1.90 level.  It is still only a mere 9 to 10 times PE.  We will accumulate on dip.

Positive on HSI and cautious on KLCI

China central bank another rate cut during weekend will spur new buying activities in Hang Seng.  It can be another boost of economy of another currency devaluation in progress.  An objective for the world world in a hidden agenda of currency war.

KLCI may be stagnant to cautious due to increas political uncertain on status of PM Najib.  We are not really sure the underlying forces behind recent dissatisfaction of his own camp.  But we do feel a potential moderate crisis is on its way.  The idea situation will be the resignation of Najib.  However we believe the path will not be that easy. A potential snap election can be called depending on the development of the story.

New stamp duty scare off HSI A shares

Rumour that new stamp duty will be imposed on stocks purchases sent A shares down both at HSI and Shanghai stock exchange.  We managed to sold 0635 彩星集團 at HKD 9.40.  We existed the counter and with additional 20% gain on exchange.

We see this bull market in China will maintain sometimes but our strategy is to continue sell on high price.

The effect of HK TV series “The Greed of Man”

If you live long enough like myself.  You may watch this TV series before production from Hong Kong.  The story line relates to greed of man in stock market. Especially when Hang Seng shoot up and crashed during the 1980s. 

Ironically, only among Hong Kong Chinese, Malaysian and I am not sure if other part of Asia does have this impact.   Whenever this TV series replay.  The entire retail force in the market is scare and sell off.  Sometimes I discovered even fund managers are avoiding period of agressive buying when this TV series replay.

It is not a coincident but now developed become a perception.   When Hang Seng risen from 24,000 to 28,000.  TVB replay the show at night and achieved a record audience for the time slot even 2015.  Malaysian Chinese retail players will rumour among themselves and stay away from the market.

Personally I think is a joke. But it does impacted the market not just once or twice. Many time until I loss count.  Asia is truly different with its unique investment culture.

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