In another event after Australia Central Bank reduce its interest rate. China announced to reduce banks deposit requirements.  Another sign that world economy is slowing and need some injections.

While there are increasing pictures of potential racism.  We decided to hold on our investment locally follow with review. We will be very careful only select multiracial or nationalism  counters as our main factors to consider for new investment.

We want our investment in a balance or neutral mode. Just in case any esculation of such sentiment will less impacting our counters.

RBA Cuts Key Rate to Record 2.25%, Says Currency Overvalued.  As of today RM 2.76 vs AUD 1.  AUD has depreciated more than 15% against RM and probably more against USD.

We see AUD will continue weakens further to below RM 2.60 to RM 2.70 in 6 months.  That will be great news for our real estate investment in Australia!  Probably a 20% discounted rate to our initial targeted value.

We have seen many MREITS up in the last few weeks.  We believe is more like a defensive play by funds.  Qcapita, UOAREIT, IGBREIT, TWREIT, ARREIT all staged close to 10% gain.  Of course another reason can be the standard dividend payoff in February each year. 

However, most are trading far from its NTAB.  An example like TWREIT which disposed one of the building lately.  Pushing it’s NTAB to above RM 1.90.  However due to low yield and unexciting market sentiment.  It is not at RM 1.30.

We believe MREITs are less attractive in term of yield.  However there are  certain MREITs trading massively big gap between market price and their NTAB worth taking note.  We will buy in small amount targeting these MREITs in the next few month.

Looking at Asia, Europe and Dow Jones reactions to the winning of Greek opposition.  The fear factor may have faded drastically.  That’s a good sign for the equities markets!

We are somehow not fully floating the RM yet.  Any country should have a stable fluctuate currency range.  Even though our fundamental remain strong and prudent.  BNM should have intervened RM range of fluctuation.  When it has reach 10% level from RM 3.00 to 3.30. 

I always have an impression that BNM is trying to ensure a soft RM maintain our manafucaturing competitiveness.  They will deny but I think they are not doing a good job when during with crisis.

They have plenty of chances when RM at 15% depreciation level.  Now it is at RM 3.60 vs USD and looking to further towards RM 3.70.

A massive bond buying monthly until September 2016. ECB aims inflation at 2%.   I think a global crash will be further away.  Money is going to be devalued further. 

We do not know what will happen next.  But QE 1, 2, 3 from FED effectively revive economy.  Paper money value continue to depreciate.  We think anyone should buy asset, commodities or even asset class commodities.

Gold, real estate, REITS, blue chips equities are definitely better than cash.

Market is more stable now and we start buying MBSB.  With its merger plan called off initially valued at RM 2.80.  The current value is at bargain.  We also bought ARREIT at RM 0.800. 

We are not sure when the local market will fully transform. It is a matter of time that online ads company like Innity will make a stand.  Recent Yahoo reselling contract for the whole Asean will drive it’s EPS further.  We will continue nibbling if the price is right.

There are many speculative reasons behind the oil price tumbled.  However, a clear sign that why demand is not cut even if price keep dropping only indicate artificial intension is at the upper hand.

If there is one thing I can buy compare to currency.  I will buy oil at the current level.  Oil price will recover and it will bring a choppy picture again probably not more than 12 months.