Posted by 10xGoreng > 2022-04-06 15:39 | Report Abuse

Covid, global lockdown, supply chain disruption, inflation then Ukraine war... How much bad news is coming? And in the midst of all the turmoil and uncertainties caused by geopolitical issues, how do we position our investment? Do we still hold cash and sit by the sideline? Zoom in into Malaysia's economy, how would all these events affect us? Election is nearing. Funds are not increasing their investment positions aggressively, even EPF is selling down most of the stocks. Out of all those companies listed in Bursa, I'd say not many have prosper. Companies are even dampened with slow growth, or cashflow issue, or debt issues, or rising expenses, and worse off some had totally lost their income stream. However, on the flip side, Malaysia market is gaining attractions as geopolitical issues have force out some fund flows from the West into Asia region, especially emerging markets. Malaysia is actually one of the favorite hotspots within this region. Data shows that incoming foreign funds have been increasing in recent months while our GDP forecast is still well above 5%. That's very good compared to the rest of the neighboring countries, partly due to our wealth of natural resources which is in the trend of commodity rally, and also our government has been proactive in managing the country's economic and people's welfare. Although our affordability index is still far away from the developed countries, but the following years will definitely be better and economy should recover very soon. Many analysts on the street are forecasting a recession, but in my view, although a recession is imminent but there are still companies which will prosper during the economic downturn. Recession proof industry such as the healthcare, pharmaceutical, biotech, consumer staples, utilities etc, these are all the conventional recession proof industry. As of this point of writing, I personally do not see a recession risk in the near term between 6 - 12 months. The reason is simply. Be greedy when people are fear, quoted from the greatest Warren Buffet. If recession can be easily forecasted, everyone is rich. Nobody expected Covid, nobody expected lockdown, nobody expected supply chain disruption where chips industry is booming, nobody expected inflation to be so high when global economy is recovering during a rate hike environment, nobody expected Russia to attack Ukraine, and how would somebody ever ever expect a recession and time it so correctly? The Malaysia stock market is quiet now, but it is a good time to invest more. Properties are undervalued, stocks are undervalued, and they are only found here in Malaysia. So join me and let's make some $$ together. Happy to receive comments and stock ideas here.