VIX is Back!

1.jpg

If you refer to one of our previous write up on VIX, you find that we urge investors to buy when VIX is high! The article I’m talking about is here.

Still similar in plan, VIX is a good measure knowing that people are actually buying when the market dips. Furthermore, the current market scare comes from Trump playing fire with North Korea’s provocations. The severity is unknown and that is the reason why markets see it as a threat.

Markets do not like unknowns and the retracement opens up opportunity. Of course if a war break loose then markets would likely go sharp south first before heading up slowly just like in Operation Iraqi Liberation.

But for now, our bets are on everything returning to normal. That is the reason for a buy call on blue chips if your are the conservative type.

Strike the good small caps if you are the brave ones!

 

CIMB on Malaysian Healthcare Sector

We agree with the recommendation for IHH but we still felt that this is the stock that isn’t worth buying when the price is consolidating. We prefer to buy IHH on dips during weak market times somewhat like today.

Valuation remains high for hospital operators but it is still a good business to invest in with REIT like exposure coupled with strong growth in the long term.

1

What Stocks have Foreigners Been Buying?

Take a look at Credit Suisse’s latest report on a summary of What Stocks have Foreigners Been Buying in Malaysia.

1

Biggest increase in foreign shareholding:-

1. Malaysian Airports, +13.7pp
2. Gamuda, +8pp
3. Maybank, +5.4pp
4. CIMB, +4.8pp
5. Sime Darby, +2.7pp

Reduced Foreign Holding:-

1. Air Asia, -9.6pp
2. Karex, -3.0pp
3. Tenaga, -2.4pp
4. IOI, -0.5pp
5. Telekom, -0.5pp

The 7th of The Decade Again…

Well well well… It’s that time again.

7th of The Decade

2007, 1987, 1977, 1957, 1917. These were the peak years for Dow Jones Industrial Average. Well it doesn’t prove that a crash is imminent but historically, the data is really scary and proves that the 7th of every decade seems cursed.

2.jpgWhat happens this year then? Peak months are usually July and October according to CIMB. Take a look at the full article by CIMB on evidence  backing this evidence.

1