Monthly Archives: March 2018

Capital Cycle-Part 1

The above chart illustrates a typical capital cycle phenomenon, showing how attractive profits tend to attract excess capital and eventually lead to underperformance of the industry, and vice versa. Example 1: Commodity Supercycle Commodity Supercycle happened in the period of low interest following the dotcom burst of 2002. It was fuelled by China consumption, whose…

Long Term Runway & Value Investing

For top-down/market-timing investors, Malaysia’s economic growth prospects for the next 12 months remain positive, as shown by Malaysia’s leading index. At the same time, such investors should be mindful of the double- edge impact of a stronger Ringgit and the 2018 general election. Externally, we are remain convinced that China’s economy will perform well and…