Budget 2018 – only a small spark to KLSE

Personally i think it is a good budget for low income group. Well balanced and social oriented. Indeed it looks like a socialism budget before pre election.

Retail segment may be boosted for a while but won’t be direct impacted to most corporate earnings. The amount of money into the market from personal income tax not substantial.

Budget deficit plan to reduce which may be good for RM. However well offset by potential lack of collection and debts to be borrowed. Overall no solid sparks for stocks. Perhaps with some fire here and there.

USD is over rated and so as Dow

I have no reason to believe in USD rally anymore even FED is to increase rate. I also do not understand th PEs of many company even like Google.

Stay invested but reduce your debt continuously. Sell off speculative stocks and changing to dividend and growth stocks. Adding Gold and wait.

USD, Dow Jones, Nasdaq, Bitcoin short to mid term pop is not far away.

We added Insas, CIMB and KIPREIT

We continue to add on Insas at 985, CIMB at 6.14 and KIPREIT at 930. Has the fundamental change for these companies? But there are noises that give me a slight opportunity to continue add on undervalued but growth potential ahead.

We added KIPREIT, MBSB and KEN

We continue to be a slightly contrarian.  When people are so fancy about IGB REIT, Pavilion REIT or CMMT REIT.  I sold them all…..  But i bought back KIPREIT.

There is only one reason MBSB price drop slightly back to 1.14. mainly insider may know the price of the merger can be too high.  But whatever it is going to be happened.  MBSB remained my top pick and i am still buying everytime market weaken.

The challenge between worry and positive of the current markets

Veteran like Warran Buffet stays invested and but values across time. Jim Roger and even Thaler the new Nobel winner worried about the market.

As to our local problems, there are also two extreme views on our high house hold debt issue and government expenditure.

As for my personal view, i do not think i have the ability to pick side with profound research. Thus, i always and still advocate the ideas of stay invest but reduce debt ratio. Increase income stocks and prepare fund for disastrous mainly Gold.

Will the eventual disaster really come? In fact, world central banks and governments already have unhealthy accounts for a very long time. It is just too big to fail.

A set of disciplinary rules are important as i believe stagflation is here to stay.

We disposed some REITs which we believe short to mid term earnings have peaked

Investing in MREITs always aimed at stable return beside of capital gain. Off late due to the changing of the landscape of economy. For example the rise of digital e-commerce somehow impacted the need for more shopping mall. Though the demand as F&B is still stable.

We also disposed office oriented MREITs as the supply continue to up pace demand. More importantly white collar jobs are on the rise becoming more mobile. We foresee the demand in office will continue to be competitive.

Overall properties are facing challenges in growth. I think the basic scenario is when the main street could not pick up the rental pressure. The yield will continue to lower while re-value the property.

Good malls are still doing well but yield is at around 5% and we believe the growth is limited.

We still keep some REITs which is specialized in certain segments. E.g. Healthcare, Hospitality, High-end commercial units and now low to mid income retail mall which we foresee the demand will be on the rise.

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