Monday 18 June 2018

Trade War Fear again!? Old Crying Wolf story repeats again...

Dear Friends,

The stock market last friday got a shock again when Donald Trump sounded out that they will implement the $50Billion tariffs after talks between the two countries failed to appease White House demands on reducing huge U.S. trade deficits.

Story on marketwatch:

US market on Friday fell, which leads to a Considerably Big drop in Singapore Stock market today. 

STI went down 32.7 points, near to a 1% drop today!

My opinion is do not worry about the continued fear on trade war issues. When buying stocks, go back to its Fundamentals

Noises like this Trade War News occasionally might steer investors' focus off track.

What we need to ask are 
1) Are Companies Earnings are still Strong 
2) Is it still beating market Expectations 
3) Is the Economy still healthy?

My answer to all 3 questions is YES!!!!

Then no matter what issues. It can be Trade War Fear, or North Korea tearing up peace contract or Debt Ceiling problems or even if Trump fired his Vice president etc... basically any news is Opportunity to Buy into the oversold stocks!

Investment Tip: 
Look at stocks that are sold down because of trade war fears! 
Look at China internet companies like Tencent,, Alibaba, Sina, Weibo, Sogou, Baozun, Momo! 
Look at Soybean prices!

My opinion is that Donald Trump is doing his best to get China to give more on the negotiation table. This trade war dispute will be solved sooner or later.

Just don't worry!

Daniel Loh

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