Dear Friends/Fellow Investors,
I was working in a Mission Church many years ago when I heard this story from a Church member who was a Remisier.
He quoted the Bible in Ecclesiates chapter 1 verse :9 ;- “The thing that hath been, it is that which shall be; and that which is done is that which shall be done: and there is no new thing under the sun”
In other words it means that the cycle of life and events repeat itself constantly all the time.
And citing one example is the year end stock market weakness. Stock market for KLSE now is weak due to these reasons
- Foreign Funds have been selling Bursa to remit funds back to the US due to 2 reasons i) US might increase interest rate. So the Dollar might get stronger ii) The Dow Jones is doing very well currently
2. Another reason is due to the perceived corruption and kleptocracy of Malaysia’s 1MDB.
3. And the impending Election uncertainty
4. GST has caused a drop in purchasing power – leading to weak consumer stocks
5. And recently there was an Investment Conference in KL. Speaker after speaker told of how Dow will crash by Mid 2018. Their Chartists told them US market will crash in year 2018. Causing panic among hundreds of investors and telling them to get out
6. December is also the month when most Fund Managers and all others go for holidays. So Market activity is slow & dull.
7. With all these negative news cum fatigue many are staying away & stocks are getting weaker by the day.
Ha! Calvin is very happy to say that this is our Best Buying Opportunity.
According to my Remisier Friend. There was an investor who followed the investment rhythm of buying in December Year End and then sell it during the next year Chinese New Year rebound. Of course it might not happen every single year. But if he does it consistently for a 10 year period.
Chances are 7 out of 10 years Market will go up in a New Year. This is called the Capricorn Effect. See https://en.wikipedia.org/wiki/January_effect
It was in December 16th 2014 when I called for a strong buy on Jaks at only 40 sen. As it turned out Jaks has gone up by over 200% now. Of course Calvin does not ask you to chase Jaks now.
The Best Stocks to buy are Stocks with Deep Value Sold down in a time of weakness like now
Below are a list of Stocks which I think Value has emerged
- MUI BHD (Andrew Khoo is now in Charge as CEO)
- BJ Corp (Just add on weakness)
- MJ Perak (Proton City Boom)
- MRCB (Already got EDL Toll privatised. HSR Award? More to come)
- BPuri (Cheapest construction Stock)
- MPHB Capital (Pengerang RAPID O& G downstream Boom
- UEMS. Lands nearest Gerbang Nusajaya High Speed Rail Station & Interchange
- DUTALAND. Very deep undervaluation
- OPCOM. More than 5% dividend proposed. And possible cash pay out
- PBA. High NTA. Pays a dividend. Recession proof monopoly
- Others are Palm Oil Counters like CBIP, Kwantas, Harnlern, TDM, WTK, JTiasa, RSawit
- Oversold counters like Media, Bonia, EIG, Texchem & YTL Power
Calvin Tan, Singapore