A closer look to financial sentiment rather than physical problem. If no article 50 trigger before next UK’S PM. German, Italy and France insisted no informal talk. Means nothing happens at least near term. Because of sentiment and speculator that caused market problem.
Brexit has depressed the markets
It is time to slowly buy into the market. But not in hurry and slowly. We seen value in the market already. However the whole situation is going to prolong because of short speculators and uncertainty.
We continue disposed Kawan for ex-MBSB
We have no idea why Kawan keep on going up. Whereas undervalued MBSB keep on heading south. I don’t want to guess it and just exchanged it.
MBSB OR traded below subscription price at RM 0.100
Brexit given us another opportunity to buy more into MBSB. We bought OR and Mother shares both at RM 0.100 and RM 720 again. Illogical sell down triggered by Brexit. Brexit is not end of the world. That’s how you are going to capitalise and make profit from it.
Stay away from property stocks
Slower demand, tighter credit and depressed stock market. Property companies will be my last choice to buy for the moment.
US debts are more serious than (if) EU collapse
First of all we do not think EU will collapse.
If you are a creditor of a debt. The debtor is at no position to return all debts yet with ultra low interest as a payback. That’s is the situation of US debt. Yet USD is so strong for a potential readjustment of interest by FED which is no weight at all.
EU already has a problem long time ago as to US. However the conceptual thinking of when crisis arises USD will become a safe heaven. That is one most unjustified theory because the entire world modern economy is just within a 100 years of development.
If there is something to worry. We think US debt is a much bigger problem and FED could not deal with it with both fiscal and monetary policies are limited.
Stay invested as no one can time the market. Buy value assets but cut your debt ratio consistently. The risk is always there and we just need to obtain return with a calculated risk.
We long US stocks and oil
Sell-off is over done for US market and so do oil. We long US market and a numbers of stocks inclusive Microsoft, Citi, BOA and Apple. We also long oil as we always believe oil should be trading at USD 60 above.
Confidence crisis more than structural for BREXIT
Disadvantages of EU after BREXIT are advantages to UK. It is always same piece of money from right to left pocket.
However, timing is not helping for this outcome. We may see prolonged slow down or potential a chain effect of sell off.
Structurally, the impacts are minimal and balance. Confidence level drive aggressive speculation to heavily shorting the markets. But we believe the market will calm real soon.
BREXITED – we long Pounds, Nikkei and short Bitcoin
While the implications may not be good but we think BOE will come in to ensure the drop is minimal. We long Pounds at 11.7% dropped, Nikkei at 9% dropped and we short Bitcoin gain at 9%.
Updated – we closed pounds and Nikkei positions with smart gains in the same day.
We continue to accumulate MBSB after entitlement date
We bought at average at RM 0.790 1st day after its right issue entitlement date. We do not understand the reason why there are selling but we are delighted to buy more at this level.