Recent Views on Investment Environment (As of 19 Sep 2015)

I will be categorizing my blog post more systematically, so it will be easier for readers and even myself to trace back to my previous writing.

Fed did not increased Interest Rate

By now, all of you will know that Fed decided not to increase the interest rate. Personally I am a bit sad as I was hoping for an interest rate increment so that price of the stocks in my watchlist to go lower (This is based on the assumption that an increase in interest rate will cause market downturn).

However this inaction of not increasing interest rate has caused people to wonder - when will Fed start increasing? Oct? Dec? We will have to wait till the next meeting.

Source; Federal Reserve Website 

Nevertheless, with everyone expecting an increase of interest rate and Fed not doing so, has caused the market into turmoil. Many markets went down significantly the next day but China went up. STI only react minimally. 

This will definitely caused the market volatility to continue with everyone guessing what will come next. As I have told some of my friends, this volatility may last till year end. Liquidity is still very important.

China and Malaysia 

Other than Fed keeping investors on our toes, China and Malaysia are also keeping us on our toes. You can never know what will happen next.

China has changed its policy to counter the significant drop in its share prices and invest millions/billions of its country's pension fund in the China Stock Market. But how long can it hold? 

Due to the 1MDB scandal, the country's stock market did dropped significantly. However, their PM has recently announced that the state equity investment firm will invest $6.6billion into the stock market and it has caused the bull to come back to its market. On the other hand, Malaysia Currency is also being beaten down and even more badly. Recovery does not seem to be around the corner. 

I just feel everyone should just NOT invest in any China/Malaysia Companies. However, if the company manufactures in China/Malaysia or sell its products in China/Malaysia, I guess this is unavoidable. Investor will have to manage their own risk.

PAP won by a major landslide

Yes. PAP won by a major landslide. I was just hoping for a more diverse parliament/government (Not that I am a supporter of any party).

Anyway for many of the investors, this should be a happy event. This meant that there will not be any major changes in our country policies and our government will continue to be stable and improve the business environment.

Especially for the Blue Chips investor, I guess Temasek Holding/GIC will not have major changes and any VERY significant drop in shares prices will be supported eventually.

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My Previous Post on my views on the market:

Post 1: Lets Talk about Telcos, AIIB, Japan Investment...
Post 2: Lets Talk about Telcos, AIIB & ICT Tenders, Investment Thoughts...