Intermarket Analysis Played A Main Roles In Guiding Investor to Invest In a Correct Forecast Manner which can improve our investment revenue and portfolio return.
Hope this article can give all investors a slide guide on how to do well investment after getting the big picture.
Overall Current Bursa is termed as slight bear (results of up trend correction)
However, in this downtrend, slight uptrend contributor is mainly from ACE market, Fledgling market (young company), Consumer, Retail (car import)
CPI raise with IR constant and money supply keep on increasing although now slow (due to shrink foreign asset) => Inflation ongoing and people tend to spend more on import stuff.
Local production and manufacture decrease in performance (sectors including agriculture, fishing, forestry)
Government Bond facing problem of cannot breaking uptrend resistance reflect the public concerness on the possible raise of interest rate.
Poor MYR performance maybe due to 2 factors : i) Negative balance sheet which consist of (a) low income (oil price drop) (b) Government debt on 1MDB issue ii) Low interest rate which did not attract foreign investor.
Commodities still work in downtrend (major palm oil and rubber) and bond works in positive manner indicates the Bursa Stock Market is currently still on the uptrend, not yet starting off the downtrend causing by economy reccession.
Hence the Drop in KLCI index is almost probably due to the weaken MYR issue. Hence our next issue shold be focusing on export company performance.
Unhealthy sign detected when citizens tend to spend more on import stuff rather than local stuff, bad for economy growth cycle, hopefully our products will get accepted in overseas.
So now the solution for the current issue is to strengthen the MYR by positiving the balance sheet, there are 2 ways of doing i) Increase income ii) Decrease debt and government expenses.
i) Increase income
- GST taxation had occured (this benefit the ACE market)
- Promote export strategy and local enteprenuer on production industry (proven on Fledgling market)
ii) Decrease debt and expenses
- Sad to say debt had not been showing effort to reduce due to many negative news
- Hence the appropriate strategy will be cutting gov expenses, citizen facilities construction will be halted and gov servant will not be getting any extra bonus this year
***Gov will not increase interest rate as this will choke our own country economy to death as we still in recovery expansion from the previous reccession***
Summary or brief next outlook :
Due to taxation, the consumer purchasing power on import stuff will be halted. Hence, retailer stock (eg BJAUTO), CONSUMER SERVICE (BJTOTO) will be stop growing for the next few years.
Banking and finance sector remain neutral and consolidation, mean while focus on local production and export stuff is the safest investing strategy.
So this is a brief guideline for invest Bursa in these 3 - 5 years. Hope everybody can get benefit from this trend. Happy Investing and Roll your fortune well.
Any request or mentor in tutoring on Investment strategy or analysis and forecast on current economy grow, you can leave comment below the post. I will schedulely arrange and write out few more tutorials if my time permits.
Thanks all for reading. Have a nice day.
From,
Money Rolling Corp
