crisis stock investing Archives

Bottom Fishing of Hong Kong and China Stock Markets (否极泰来)

Posted on May 20, 2024 Written by Dr Tee (Ein55)

Over the past few years, both Hong Kong and China stock markets have been bearish, under low Optimism level, many giant stocks (property, technology and nearly all sectors) are heavily discounted with over 50-70% price corrections.

However, it is not easy to “Buy Low” as the stock may get lower, an investor may end up selling lower with loss. Even Charlie Munger (business partner of Warren Buffett), has been trying to buy low several times for Alibaba when share prices falling down from $200+ to below $100, ending up stop loss when it exceeds risk tolerance level.

The key is timing of entry for low optimism giant stocks, including Hong Kong Hang Seng Index (HSI ETF) and China Shanghai Index (A50 ETF), aligning to own unique personality. Contrarian investing (buying during bearish trend) requires careful selection of stocks (eg. defensive dividend stocks), strong mind control and money management (eg. averaging down with position sizing and diversification over a portfolio of 10-20 giant stocks).

Trend-following investing could be more suitable for retail investors, aiming for giant stocks with prices far below value (need to compute fair price), then waiting patiently for reversal signals from bear to bull again. Both Hong Kong and China have created double bottom pattern opportunities, first recovery was late 2022 when zero COVID policy has ended but then corrected again with economy slowdown to another low (eg. 15000 points for Hong Kong HSI), second recovery only happens recently after economic stimulus plans (eg. loosening of property market, lower mortgage rate, etc). HSI recovers again from 15000 points valley to above 17000 short term resistance (late Apr 2024), currently near to 20000 points.

For investors who miss the Hong Kong HSI 30% rally from 15000 to nearly 20000 points, may feel “missing the boat”, thinking it is too “high” now to buy. In fact, this is the mentality of “penny wise but pound foolish”, i.e. only considering the near term (tree) but missing the mid to long term (forest). Even for a short term trader, it is fine to Buy intermediate “High” Sell Higher following trend, while the “High” for a trader is actually still “Low” (despite not the lowest) for longer term investor. These perception differences are personality dependent, alignment of strategy with unique personality (eg. short / mid / long terms, cyclic / growth / dividend, contrarian / follow-trend, etc) is key for success in stock trading or investing.

Current global stock markets provide special advantages to both short term traders (eg. bullish US market with new historical high for S&P500 and Dow Jones to Buy High Sell Higher with Momentum Trading, aiming for US interest rate cut in year 2024) and long term investors (eg. bearish or lagging Asian market (Hong Kong / China / Singapore / Malaysia) to Buy Low Sell High with Cyclic Investing, supported by recent economic stimulus plans in China.

It is timely now to review own global stock portfolio, making decisions (Buy / Hold / Sell / Wait / Shorting), leveraging on market greed and fear.

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There are over 2000 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Ascendas Reit (SGX: A17U), CapitaLand (SGX: C31), CapitaLand Integrated Commercial Trust (SGX: C38U), City Development (SGX: C09), ComfortDelGro (SGX: C52), Dairy Farm International (SGX: D01), DBS Bank (SGX: D05), Frasers Logistics & Commercial Trust (SGX: BUOU), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), Keppel Corp (SGX: BN4), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), OCBC Bank (SGX: O39), SATS (SGX: S58), Sembcorp Industries (SGX: U96), Singapore Airlines (SGX: C6L), Singapore Exchange (SGX: S68), Singtel (SGX: Z74), ST Engineering (SGX: S63), Thai Beverage (SGX: Y92), UOB Bank (SGX: U11), UOL (SGX: U14), Venture Corporation (SGX: V03), Wilmar International (SGX: F34), YZJ Shipbldg SGD (SGX: BS6).

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Integrated Commercial Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

View quick preview video below, Dr Tee will introduce 10 key stock investment strategies (股票投资十招) to be learned in 4hr free stock webinar:

Register Here (Dr Tee Free 4hr Stock Webinar): www.ein55.com

Filed Under: Macroeconomy, Market Cycle Investing, Market Outlook, Stock Market, Technical Analysis, Uncategorized Tagged: china market, crisis stock investing, Hong Kong Market

Hidden Stock Opportunities in New Year of Dragon 2024 for Both Short Term Traders and Long Term Investors (卧虎藏龙)

Posted on February 1, 2024 Written by Dr Tee (Ein55)

As highlighted over 1 year ago, US inflation falling from the peak below the interest rate (5+%) was a golden cross for US stock market. Indeed, US stocks become very bullish, S&P500 achieving new high >5000 points recently, ideal for short term traders. At the same time, due to economy slowdown, both China and Hong Kong stock markets are in crisis, providing a rare opportunity for long term investors.

In the New Year of Dragon 2024, US inflation continues to decline (currently around 3+%) while market expecting the Fed would start to cut interest rates. Lower interest rate with strong economy would help to push up the bullish US stock market further as funds may move from bank deposits to stock market for quicker return. However, US stock market is more suitable for short term trading to Buy High Sell Higher (momentum trading / swing trading) until it reaches high Optimism level with a black swan one day. Technology giant stocks (not limited to AI) may gain more momentum with lower borrowing cost, aiming for Ver 2.0 technology bubble (Ver 1.0 was Year 2000 dotcom bubble). Bubble is friend for traders with condition that one has to know when to exit, not to hold as a long term investor when market may crash one day with >50% potential drawdown.

Usually global stock markets are aligned at country level to go up and down together, eg Japan, India, Taiwan, Indonesia, etc, are following US to higher Optimism level. However, due to political economy difference in each country, Asian stock market performs relatively weaker, especially for China and Hong Kong, suffering economy slowdown with weak investment markets (stock, bond, property, etc). This creates a golden opportunity for long term investor to Buy Low Sell High with condition that the stock portfolio is diversified over 10-20 giant stocks with strong businesses to survive and recover from stock crisis. Even for China / Hong Kong stocks at very attractive prices, entry requires consideration of 3 unique C.E.T. personalities:

1) C = Contrarian Investors (allows buying low with bearish prices),
2) E = Early Investors (entering with potential light at the end of tunnel, eg. market awaits massive stimulus plan from China),
3) T = Trend Investors (wait for stronger confirmation for bear transits into early bull).

At the same time, other stock exchanges (eg. Singapore and Malaysia, etc) are at moderate Optimism levels, stagnant with mixed performance. Careful selection of giant stocks would be a better choice than investing indices / ETF.

So, your stock performance in New Year 2024 may be like a “Dragon” or “Snake”, depending on your choice (eg. US stocks for short term trading, Asian stocks for long term investing) with alignment to your unique personality (short term, mid term, long term) and style of investing (growth, cyclic, dividend, undervalue, momentum, swing, etc).

It is timely now to review own stock portfolio, making decisions (Buy / Hold / Sell / Wait / Shorting) ahead of majority.
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There are over 2000 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Register Here (Dr Tee Free 4hr Stock Webinar): www.ein55.com

Filed Under: Market Cycle Investing, Market Outlook, Stock Market Tagged: crisis stock investing, long term investing, short-term trading

Short Selling Strategies for Bearish Stock Market (反败为胜)

Posted on October 18, 2022 Written by Dr Tee (Ein55)

Over the past 6 months, the Fed starts to increase interest rate drastically to suppress the high inflation rates over 8%. As a result, global stock markets experienced second round of stock crisis since Mar 2020 (pandemic crisis) with over 20%-50% major correction in most stocks, especially technology stocks in US Nasdaq and Hong Kong.

Current global economy is still relatively strong but any black swan (eg. Russian-Ukraine war escalated to higher level, crash in property / bond / commodity /forex markets, political instability with major economy, new COVID variants, etc) may drag it into global financial crisis.

Instead of worrying about uncertain markets, a trend-following trader may leverage on market fear to potentially profit from falling stock prices with short-selling. As for smart investors, there is option to hedge against the declining portfolio value of long term position with inverse ETFs, especially for those who are not familiar with short-selling.

Crisis could be Opportunities if an investor or trader knows how to apply short-selling strategies during bearish stock market. Let’s learn further from Dr Tee on how to take action in current stock markets with shorting strategies:

1) Short Selling Strategies

It is more common to short sell a stock with CFD (Contract for Difference), making profit with falling of the prices over a period of time. Since the global stock market (especially indices for major economies) are growing in long term, therefore it is more suitable to consider shorting with short term strategy.

Since business fundamental has less changes in short term (eg. a few weeks or a few months), main focus for shorting is on Technical Analysis (TA) of share prices with consideration of Level Analysis (eg. L2 sector and L3 country performances)

Here are 2 main considerations:

1.1) Technical Analysis

In contrary to normal long position (Buy & Hold), shorting has higher probability in a bearish stock market with declining prices (eg. dropping over 10-20% in a few months). A trader may focus on stocks which show consistent trend of “lower lows and lower highs” of share prices, initiating shorting position when the price pattern below certain support (eg. neckline of double top, support of a price channel, etc) or recording a new intermediate low over the past few weeks / months (price just falls below the support).

Most experienced traders apply CFD for short selling with margins. Since it involves leveraging, it is possible a trader to lose more than initial capital, especially if there is no risk management such as stop loss. Therefore, it is critical to apply S.E.T. (Stop Loss / Entry / Take Profit) in a trading plan. Position size is also important to limit the potential loss within comfortable level before aiming for higher return with CFD leveraging.

For example, after shorting is initiated, a trader needs to set a higher price as stop loss (shorting is reversed strategy, making money with falling prices, making loss with rising prices), eg. if entry with price below the support, then stop loss is naturally when there is a false breakout (price is returned above the support). Each trader may have unique risk tolerance level, eg 5-10%, and difference profits target, with / without leveraging. When shorting selling is successful (price falling as expected), a trader may apply a trailing stop (eg. moving average, MACD and other common TA indicator), cover the shorting position (closing the shorting position) when there is a reversal signal with rising prices, taking profits at this stage while waiting for the next opportunity to short again.

Short term trading, especially short selling with CFD, requires strong commitment to trading plan, removing emotions due to volatile daily prices. Intra-day trading is more speculative as any unexpected daily news may cause a surge in daily prices. Ideally, short term trading requires consideration of price in a few weeks to a few months.

1.2) Level Analysis

Level Analysis is mainly to align individual stock (Level 1) with sector (Level 2) or country indices (Level 3) to maximize the strength of price trends. For example, when market leaders such as S&P 500 Index or Nasdaq Index (Level 3) records a new lower price over the past 6-12 months with bearish TA trends, if sector (Level 2, eg Technology Sector – XLR) also follows, then probability for Level 1 technology stocks (eg. FANG / software / semi-conductor and related stocks) to fall will be higher. The quality of shorting would be higher after such Levels 1-2-3 alignment.

Therefore, when indices are recovering (eg. reversed from bear to bull) one day, it would be more risky to short at a stock which may be still bearish. The consideration is similar to long a stock (Level 1, less than 10% stocks could still be bullish currently) while the indices (Level 3) are bearish, probability of success will be lower.

2) Inversed ETFs

For retail traders who are less familiar with short selling or CFD, may consider inversed ETFs, which would grow in prices (as if long strategy) with falling of indices. The application is limited to major Levels 2-3 indices (eg. certain sector and country indices ETF), very few on individual stocks (except for popular stocks such as Apple, Tesla, etc).

Even for investors who hold on to current stock portfolio, may apply inverse ETF as a hedging tool to limit or stop the losses in a bearish stop market. If Level 2-3 indices falling trends are aligned to long term position of Level 1 stocks, an investor may apply a suitable inverse ETF to hedge against the bearish stock market to limit the losses of holding to current stock portfolio (if not selling).

For inverse ETF, there is option of 1X, 2X, 3X reverse return, eg. when Nasdaq falls by 1%, SQQQ would go up by 3X = 3%. This indirectly includes CFD leveraging into inverse ETF, allowing higher volatility (higher potential return with higher risk).

Here is a list of common inverse ETFs, sorted by fund size (SQQQ is the most popular):

https://etfdb.com/etfs/inverse/equity/

Here are some common ProShares Short ETFs:

PSQ (-1X Nasdaq Index)

SQQQ (-3X Nasdaq Index)

SH (-1X S&P 500 Index)

SPXU (-3X S&P 500 Index)

DOG (-1X Dow Jones Index)

SDOW (-3X Dow Jones Index)

YXI (-1X China A50 Index)

It is relatively safer to apply inverse ETF than CFD for short selling because a retail investor could apply normal long strategy (eg. Buy Low Sell High, Buy High Sell Higher) which is more natural. In addition, the loss of inverse ETF is limited to capital invested (assuming no stop loss is applied). However, inverse ETF has lack of choices, trends of Level 2-3 indices may not fully aligned with Level 1 individual stocks interested (which would be more suitable with CFD).

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Shorting is mainly reversed strategy (aiming for lower prices) of usual long strategy (aiming for higher prices), riding the bearish share prices, breaking each critical support to start the shorting. It may be against the personalities of some investors, therefore it is possible to “Wait”, no need to “Short” during a bear market.

The global stock market continues to monitor the CPI (Consumer Price Index) or inflation, which likely to fall further over the next few months due to higher base for comparison 1 year ago (CPI is yearly economic data) unless there is another unexpected market surprises (eg. Russia stopping the supply of natural gas to Europe during the cold winter, US/China trade war escalated to the next level, etc).

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There are over 2000 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Register Here (Dr Tee Free 4hr Stock Webinar): www.ein55.com

Filed Under: Market Outlook, Stock Market, Technical Analysis, Trading Tagged: crisis is opportunity, crisis stock investing, global financial crisis, shorting

5 Stock Actions for 5 Black Swans (五内如焚)

Posted on June 13, 2022 Written by Dr Tee (Ein55)

Over the past 2 years of pandemic, global stock markets have been experiencing roller-coaster rides, down and up and down … mainly due to these 5 black swans with high uncertainties in cyclic manner:

1) COVID19 Pandemic

2) Supply Chain Disruption

3) Interest Rate

4) Inflation

5) Russian-Ukraine War

Global stock markets experienced mini dotcom bubble with over 30%-50% major correction in technology stocks, especially in US Nasdaq and Hong Kong. Both long term investors and short term traders are worried of high inflation over 8%, interest rate hike (may exceed 3% in 1 year), Russia-Ukraine War (higher commodity prices), supply chain disruptions and endless COVID19 cases (over 2 years) which contribute to declining stock prices. These 5 black swans (五内如焚) may spread the fears in technology stocks to most sectors, resulting in a global financial crisis.

Instead of worrying about uncertain markets, a smart investor may consider strong dividend giant stocks with protection by defensive sector business, a natural way to hedge against high inflation with interest rate hike while collecting growing passive incomes in a steady way. A wise trader would make friend with price trend, waiting for uptrend to reenter again (avoiding Buy Low get Lower). It is possible to integrate long term investing with short term trading to enjoy the best of 2 worlds.

Crisis could be Opportunities if an investor or trader knows how to take 1 of 5 critical actions (Buy / Hold / Sell / Wait / Shorting) aligning to own personality. Let’s learn further from Dr Tee on how to take action in current stock markets with 5 black swans:

1) Buy

With over 90% global stocks (especially in US & Hong Kong) turned bearish, “Buy” action for investors could be more suitable for defensive dividend giant stocks, taking calculated risks of limited downside, no need to time the market. A trader may still consider strong individual stocks from bullish sectors such as utilities, commodities, energy, etc, which still have potential to rise.

Most people wish to Buy Low Sell High but usually ending up do nothing when market is falling (fear of falling knife) and rising again (fear of “expensive” stocks).

Supply chain disruptions during pandemic becomes worse, especially for commodities (eg. agricultural products, crude oil and natural gas) during Russia-Ukraine War which is highly complicated (political, financial, humanistic, etc). While commodity stocks still enjoy higher profits in near future, it is more suitable for shorter term traders as Ein55 Optimism level of commodity stocks are generally higher, may not be suitable for long term investing.

2) Hold

A short term trader may have sold the stocks when stock markets start to turn bearish a few months ago but a long term investor may have option to hold on to certain stocks with condition that it is a giant with strong and defensive businesses.

During interest rate hike (to tame the high inflations), global bank stocks would have higher interest income due to higher Net Interest Margin (NIM). However, banks profits could be reduced if the stock correction ends up as a global financial crisis (eg. stagflation or hyper-inflation over 10%), there could be less borrowing of money by corporate. At the same time, non-interest income (eg. investment funds, insurance, credit card, etc) is highly dependent on economy condition.

The Fed of US is taking the lead to increase interest rate (from 1%) which is an art to control the high inflation (over 8%) with amount of adjustment. If the interest rate is increased too fast (eg. over 1% each time), investors may become fearful, resulting in bearish stock market which could limit hiring and expansion of business, ending as global financial crisis eventually. If the interest rate is increased too slow (eg. minimal 0.25% each time), it could not bring down the high inflation (already last 40 years high). The Fed could only do micro adjustment every few months (6 times each year) while giving “assurance” with more positive comments to cool down the inflation without spreading the fear too much.

Singapore stock market performs better than US stock market so far in Year 2022, mainly due to there are more banking and finance stocks (over 30%) than technology stock (only 1, Venture Corp) in 30 STI component stocks:

Ascendas Reit (SGX: A17U), CapitaLand Integrated Commercial Trust (CICT) (SGX: C38U), CapitaLand (SGX: C31), City Development (SGX: C09), ComfortDelGro (SGX: C52), DBS Bank (SGX: D05), Dairy Farm International (SGX: D01), Frasers Logistics & Commercial Trust (SGX: BUOU), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Matheson Holdings JMH (SGX: J36), Jardine Cycle & Carriage (SGX: C07), Keppel Corp (SGX: BN4), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), OCBC Bank (SGX: O39), SATS (SGX: S58), Singapore Exchange (SGX) (SGX: S68), Singapore Airlines (SIA) (SGX: C6L), ST Engineering (SGX: S63), Sembcorp Industries (SGX: U96), Singtel (SGX: Z74), Thai Beverage (SGX: Y92), UOB Bank (SGX: U11), UOL (SGX: U14), Venture Corporation (SGX: V03), Wilmar International (SGX: F34), Yangzijiang Shipbuilding (YZJ) (SGX: BS6).

Similarly, there are more value stocks in Malaysia 30 KLCI index component stocks:

CIMB (Bursa: 1023) CIMB GROUP HOLDINGS BERHAD, DIALOG (Bursa: 7277) DIALOG GROUP BERHAD, DIGI (Bursa: 6947) DIGI.COM BERHAD, GENM (Bursa: 4715) GENTING MALAYSIA BERHAD, GENTING (Bursa: 3182) GENTING BERHAD, HAPSENG (Bursa: 3034) HAP SENG CONSOLIDATED BERHAD, HARTA (Bursa: 5168) HARTALEGA HOLDINGS BERHAD, HLBANK (Bursa: 5819) HONG LEONG BANK BERHAD, HLFG (Bursa: 1082) HONG LEONG FINANCIAL GROUP BERHAD, IHH (Bursa: 5225) IHH HEALTHCARE BERHAD, IOICORP (1961) IOI CORPORATION BERHAD, KLCC (Bursa: 5235SS) KLCC PROPERTY HOLDINGS BERHAD, KLK (Bursa: 2445) KUALA LUMPUR KEPONG BERHAD, MAXIS (Bursa: 6012) MAXIS BERHAD, MAYBANK (Bursa: 1155) MALAYAN BANKING BERHAD, MISC (Bursa: 3816) MISC BERHAD, NESTLE (Bursa: 4707) NESTLE MALAYSIA BERHAD, PBBANK (Bursa: 1295) PUBLIC BANK BERHAD, PCHEM (Bursa: 5183) PETRONAS CHEMICALS GROUP BERHAD, PETDAG (Bursa: 5681) PETRONAS DAGANGAN BHD, PETGAS (Bursa: 6033) PETRONAS GAS BERHAD, PMETAL (Bursa: 8869) PRESS METAL ALUMINIUM HOLDINGS BERHAD, PPB (Bursa: 4065) PPB GROUP BERHAD, RHBBANK (Bursa: 1066) RHB BANK BERHAD, SIME (Bursa: 4197) SIME DARBY BERHAD, SIMEPLT (Bursa: 5285) SIME DARBY PLANTATION BERHAD, TENAGA (Bursa: 5347) TENAGA NASIONAL BHD, TM (Bursa: 4863) TELEKOM MALAYSIA BERHAD, TOPGLOV (Bursa: 7113) TOP GLOVE CORPORATION BHD.

3) Sell

Some investors may feel that it is too late to sell stocks after over 30% – 50% correction in stocks, especially in technology sector. In fact, short term traders and long term investors have different risk tolerance levels, criteria to sell could be different as well. For traders, it is important to follow a consistent trading system to buy and sell (eg. every few weeks or months), mainly based on Technical Analysis with trend-following. For investors, more considerations on longer term stock performance including business conditions (not just based on stock prices), selling of stocks is an option, not a must.

Some investors may also worry after selling a stock (especially a giant stock), hard to buy back again at the same prices, therefore prefer to hold. If an investor could integrate trading mindset into investing, even if the current bearish stock market is only a major correction (eg. rebound when high inflation is tamed), it is never too late to buy back the same stocks (or stronger stocks) at the same selling price or even higher price (difference of selling and buying price is a premium of insurance to ensure a more bullish market).

Sell a stock (whether to take profits or minimizing losses) is not a mistake, even the stock may recover higher eventually. When business or fundamental analysis is core (value investing), stock price analysis (allowing Buy Low or Sell High) would help to enhance the probability of success with higher potential return. Partial consideration of only fundamental or technical is incomplete, there could be market traps in each method.

4) Wait

For investors or traders with no stock currently, some may want to wait for opportunities to buy low. Cash is king only when used at the right time in investment one day. Cash deposit in banks forever could be wasted if too much cash (beyond emergency fund for family) with little return (current bank interest rate is still far below inflation, therefore cash is shrinking in value with time).

For investors who could not any take action in stocks due to low risk tolerance level, may consider to invest in bank stocks (eg. getting 1% interest from cash deposit in OCBC vs over 4% dividend in OCBC stock), risk as stock investors could be lower (especially for lower price-to-book ratio stock) than cash depositor ($75k compensation if a Singapore bank go bankrupt).

“Wait” is an important action but window of opportunity may be widely opened while market is still chaotic or full with negative comments. It is easy to say “Be greedy when others are fearful” but it is possible to Buy Low get Lower as it is almost impossible to buy at the lowest point (similarly to sell at the highest point).

So, probability investing (eg. LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) is a solution, taking action (from Wait to Buy) when signal has appeared for own personality. As of now, mini bear (over 20% correction in indices) is confirmed but big bear (over 50% price correction) is still uncertain.

Waiting is meaningful only if an investor or trader could take action at certain point of time to buy stock again (eg. a portfolio of 10-20 giant stocks with strong businesses and recovery in share prices).

5) Shorting

“Shorting” is a higher probability of action in a bearish stock market with over 90% stocks correcting to lower prices, profiting from lower prices. However, it is more suitable for shorter trading and S.E.T. (Stop Loss / Entry / Target Prices) plan is required for trading because shorting could have infinite loss when a trader short sell a stock with rising price (sky is the limit for upward potential, eg. Tesla or iFAST have over 10X in share prices over the past few years).

Shorting may be conducted with CFD (Contract for Difference) platform but only selected stocks are available (many weak fundamental stocks may not be available in CFD). CFD may not be suitable for beginners, especially those who don’t have a trading plan. Alternatively, an investor may considered inversed ETF (higher prices or more profits when actual index is falling) which could be traded under most stock exchanges.

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While 5 black swans above could be uncertain in nature (therefore it is called “black” swan) but they are actually secondary factors. The primary factors of stock market prices up and down are actually Greed and Fear, which could be reflected under LOFTP (Level / Optimism / Fundamental / Technical / Personal). Despite we could not have a crystal ball to see the future stock market, probability investing aligning to own personality would enhance the winning chances.

Register Here (Dr Tee Free 4hr Stock Webinar): www.ein55.com

Filed Under: Fundamental Analysis, Macroeconomy, Market Cycle Investing, Stock Market, Technical Analysis Tagged: black swan, crisis stock investing, High Dividend Investing

76 Singapore Commodity and Malaysia Plantation Stocks (天时地利)

Posted on March 31, 2022 Written by Dr Tee (Ein55)

Supply chain disruptions during pandemic has resulted in surging commodity prices (eg. palm oil and other agricultural products, crude oil, metals, etc). The situation becomes worst with recent Russia-Ukraine war, global inflations would be higher in near term, pushing commodity market to even higher optimism.

Instead of worrying about uncertain markets, a smart investor may consider strong commodity giant stocks with protection by rising commodity sector business, a natural way to hedge against high inflation with interest rate hike.

In this article, you will learn from Dr Tee on 76 Singapore Commodity and Malaysia Plantation Stocks to profit in current stock market, some may be considered for longer term investing and / or short term trading with COVID-19 recovery stock rally and high inflations. Bonus for readers who could read every word of the entire article, learning unique strategy to position in 6 Singapore and Malaysia commodity / plantation (mainly palm oil) giant stocks for both passive incomes (dividend) and capital gains with potential share price appreciation. Both Ein55 Optimism levels and intrinsic values will be shared for each giant stock:

3 Singapore Giant Commodity Stocks:

– Wilmar International (SGX: F34), Golden Agri Resources (SGX: E5H), First Resources (SGX: EB5)

3 Malaysia Giant Plantation Stocks:

– United Plantations (Bursa: 2089), Genting Plantations (Bursa: 2291), Kim Loong Resources (Bursa: 5027)

These stocks have plantations and processing factories mainly on palm oil and some also on other agricultural products (eg. sugar, wheat, seeds, etc). Singapore and Malaysia has the most number of palm oil giant stocks in the world with plantations mainly based in Malaysia and Indonesia.

The best time to invest in 35 Singapore commodity stocks and 41 Malaysia plantation stocks (total 76 stocks) is always during global stock crisis (eg. Year 2020-2021 during pandemic, 2008—2009 during subprime crisis, etc), not only able to maximize the dividend yield (due to lower entry share price), also could have higher potential of capital gains (when market cycle moves from fear in low optimism to greed in high optimism). Commodity stock investing is not based on stock strategy (Buy Low Sell High) alone, may be integrated with dividend investing, growth investing, swing trading, momentum trading, cyclic investing, defensive investing and other Ein55 strategies.

More importantly, commodity stock investing has to be integrated with commodity market itself, eg, riding the uptrend of commodity prices. Since palm oil prices are at very high Ein55 Optimism over 75% (very bullish), most palm oil giant stocks are more suitable for short term to medium term trading, while a few could still be considered for longer term investing. So, alignment with short term prices by Technical Analysis is helpful (eg. ensure higher high and high low in share prices).

There are 76 Singapore commodity stocks and Malaysia plantation stocks (not all are giant stocks with Dr Tee criteria), based on the last price traded (30 Mar 2022), sorted by 3 key Fundamental Criteria:
1) ROE (a criteria for growth stocks, eg. ROE > 5%),
2) Dividend Yield, DY (a criteria for dividend stocks, eg. DY > 3%),
3) Price-to-Book (PB) ratio, Price/NAV (a criteria for undervalue stocks, eg. PB < 1).

From the table sorted below, 50% (38/76 stocks) are undervalue (Price to Book ratio, PB < 1), mainly due to COVID-19 stock crisis, affecting commodity business with bearish share prices a few years ago but trend is reversed currently with bullish commodity market. There are 64% (49/76 stocks) have growing businesses (over 5% ROE, Return on Equity) with rising commodity prices while only 18% (14/76 stocks) were making losses during pandemic in Year 2021. There are nearly 50% (37/76 stocks) were paying dividend but only 20 stocks (26%) having dividend yield over 3%, potential for dividend investing (higher dividend yield may not be better).

No	76 SG+MY Commodity Stocks	ROE (%)	PB	DY (%)
1	Asia Enterprises (SGX: A55)	3.9	0.6	5.1
2	AsiaPhos (SGX: 5WV)	-8332.5	11.3	–
3	Bumitama Agri (SGX: P8Z)	16.7	1.4	3.2
4	China Mining (SGX: BHD)	27.3	0.5	–
5	CNMC Goldmine (SGX: 5TP)	4.2	1.7	0.9
6	Cosmo Steel (SGX: B9S)	2.9	0.6	3.2
7	Don Agro (SGX: GRQ)	15.3	0.6	3.2
8	First Resources (SGX: EB5)	13.5	2.0	3.1
9	Fortress Minerals (SGX: OAJ)	37.7	3.0	2.2
10	Geo Energy Resources (SGX: RE4)	51.2	1.4	19.0
11	Global Palm Resources (SGX: BLW)	9.3	0.7	7.9
12	Golden Agri-Resources (SGX: E5H)	10.2	0.6	5.3
13	Golden Energy (SGX: AUE)	23.5	1.8	–
14	Halcyon Agri (SGX: 5VJ)	0.6	0.6	–
15	HG Metal (SGX: BTG)	10.9	0.5	9.7
16	Indofood Agri (SGX: 5JS)	6.5	0.5	2.0
17	Intraco (SGX: I06)	-1.6	0.7	–
18	Jawala (SGX: 1J7)	14.2	1.1	2.7
19	Kencana Agri (SGX: BNE)	54.6	1.5	–
20	Mewah Intl (SGX: MV4)	11.8	0.7	2.5
21	MSC (SGX: NPW)	20.3	3.1	1.6
22	Nam Lee Metal (SGX: G0I)	9.9	0.6	4.2
23	NSL (SGX: N02)	1.0	0.7	5.6
24	Resources Global (SGX: QSD)	40.0	1.0	2.5
25	Samko Timber (SGX: E6R)	-23.9	12.2	–
26	Shen Yao (SGX: A78)	-42.9	1.4	–
27	Soon Lian (SGX: 5MD)	17.0	0.5	1.7
28	Southern Alliance (SGX: QNS)	40.4	2.9	2.3
29	Sri Trang Agro (SGX: NC2)	34.0	0.9	15.8
30	Union Gas (SGX: 1F2)	26.6	4.3	2.4
31	Union Steel (SGX: BLA)	12.4	0.4	6.0
32	USP Group (SGX: BRS)	-5.7	0.2	–
33	VCPlus (SGX: 43E)	-44.2	15.0	–
34	Wilmar International (SGX: F34)	9.5	1.1	3.3
35	Wilton Resources (SGX: 5F7)	6.2	1.9	–
36	AASIA (Bursa: 7054)	-3.4	0.4	–
37	BKAWAN (Bursa: 1899)	18.1	1.6	4.2
38	BLDPLNT (Bursa: 5069)	10.3	1.3	0.3
39	BPLANT (Bursa: 5254)	8.9	0.8	–
40	CEPAT (Bursa: 8982)	13.4	0.8	–
41	CHINTEK (Bursa: 1929)	9.3	1.0	3.8
42	DUTALND (Bursa: 3948)	1.1	0.2	2.9
43	FAREAST (Bursa: 5029)	13.1	1.7	–
44	FGV (Bursa: 5222)	21.5	1.3	–
45	Genting Plantations (GENP) (Bursa: 2291)	8.4	1.5	–
46	GLBHD (Bursa: 7382)	-4.9	0.3	–
47	GOPENG (Bursa: 2135)	-0.9	0.6	–
48	HARNLEN (Bursa: 7501)	-7.1	0.6	–
49	HSPLANT (Bursa: 5138)	11.9	1.1	6.7
50	INCKEN (Bursa: 2607)	-2.0	0.3	–
51	INNO (Bursa: 6262)	26.8	2.6	–
52	IOICORP (Bursa: 1961)	13.9	2.5	2.6
53	JTIASA (Bursa: 4383)	2.8	0.8	–
54	Kim Loong Resources (KMLOONG) (Bursa: 5027)	12.7	2.3	3.5
55	KLK (Bursa: 2445)	19.0	2.2	4.0
56	KLUANG (Bursa: 2453)	4.6	0.4	0.8
57	MALPAC (Bursa: 4936)	4.3	0.5	–
58	MATANG (Bursa: 0189)	1.8	0.8	2.2
59	MHC (Bursa: 5026)	14.7	0.8	–
60	NPC (Bursa: 5047)	2.1	0.4	–
61	NSOP (Bursa: 2038)	4.3	0.5	–
62	PINEPAC (Bursa: 1902)	-5.0	0.3	–
63	PLS (Bursa: 9695)	5.1	1.4	–
64	RSAWIT (Bursa: 5113)	-1.9	1.3	–
65	RVIEW (Bursa: 2542)	6.0	0.6	–
66	SBAGAN (Bursa: 2569)	7.2	0.3	2.2
67	SHCHAN (Bursa: 4316)	38.0	0.5	–
68	SIMEPLT (Bursa: 5285)	14.9	2.3	–
69	SOP (Bursa: 5126)	18.2	1.1	–
70	SWKPLNT (Bursa: 5135)	19.0	1.1	–
71	TAANN (Bursa: 5012)	17.8	1.4	–
72	TDM (Bursa: 2054)	-4.4	0.7	–
73	THPLANT (Bursa: 5112)	10.8	1.2	–
74	TSH (Bursa: 9059)	10.3	1.4	–
75	UMCCA (Bursa: 2593)	1.0	0.8	1.8
76	United Plantations (UTDPLT) (Bursa: 2089)	19.4	2.3	6.3

However, not all the 76 Singapore Commodity and Malaysia Plantation stocks listed are giant stocks. A growing business in the past may not be sustainable during COVID-19 period and an undervalue stock may remain lagging in share prices for many years, could end up as a crisis stock. Fundamental Analysis alone is not sufficient, a low PB or low PE or high dividend yield stock may be a value trap as this may be the result of lower share price with weakening businesses. Therefore, deeper analysis is required with LOFTP (Level, Optimism, Fundamental, Technical, Personal Analysis) Strategies.

Let’s learn these 6 commodity and plantation giant stocks (mainly related to palm oil) in Singapore and Malaysia, understanding the business nature, investment clock and unique strategy.

1) Singapore Commodity Giant Stock – Wilmar International (SGX: F34)

Among the 6 giant stocks studied, Wilmar has the largest market cap (about 10 times more relative to others), also the 6^th largest stock in 30 STI component stocks. A giant is not defined by the size, even small cap stock could be a giant stock based on Dr Tee criteria.

The IPO of Wilmar subsidiaries in China and India help Wilmar to grow its market value further. Major shareholder is PPB Group (Bursa: 4065), Perlis Plantations Berhad, controlled by Kuok Family (led by Robert Kuok, the richest person in Malaysia). This is additional bonus with such a strong sponsor.

Wilmar has stronger business, mainly supported by higher commodity prices (eg. palm oil and sugar, etc). However, due to too bullish palm oil prices, when high inflation is tamed in future, it may affect its cyclic stock prices. Therefore, currently Wilmar (as well as other 5 giant stocks studied) is more suitable for short to medium term trading until the commodity market falling down from high optimism one day (likely triggered by another Black Swan).

Wilmar is still at moderate low Ein55 Optimism (<50%) but recovering well from low in pandemic, aiming for Ein55 intrinsic value of about $6/share (about 30% potential upside in medium term). The stock is well balanced, suitable for growth investing (Buy & Hold), cyclic investing (Buy Low Sell High) or even dividend investing (about 3% dividend yield).

2) Singapore Commodity Giant Stock – Golden Agri Resources (SGX: E5H)

Golden Agri Resources is a very cyclic stock, share prices has been bearish over the past 10 years (2010-2020, suitable for shorting then), incurring big loss for long term investors. The business is also more cyclic in nature, currently having upside potential with rising palm oil prces.

Crisis (eg. lower share prices) is an opportunity only for a giant stock. Despite Golden Agri does not have very strong business, its foundation is good, able to recover in share prices after 10 years of “winter” for business and stock prices.

Golden Agri is still at moderate low Ein55 Optimism (about 30%) but recovering well from low in pandemic, aiming for Ein55 intrinsic value of about $0.60/share (about 2X potential upside but at the price of relatively higher risk). The stock is more suitable for cyclic investing (Buy Low Sell High), aligning with palm oil optimism until the bull market has ended.

3) Singapore Commodity Giant Stock – First Resources (SGX: EB5)

First Resources is relatively smaller stock but it is also a giant stock, more suitable for shorter term trading as Ein55 Optimism is at fair price (about 50%). The share price is recovering well from low in pandemic, aiming for short term trading.

The stock is more suitable for swing trading (Buy Low Sell High in weeks or months) or momentum trading (Buy High Sell Higher with price breakout), aligning with palm oil optimism until the bull market has ended. Alignment with short term prices by Technical Analysis is helpful (eg. ensure higher high and high low in share prices).

4) Malaysia Plantation Giant Stock – United Plantations (Bursa: 2089)

United Plantations is a rare giant stock suitable for long term investing (having over 100 years of history with Danish management for several generations in Malaysia). The parent company (UIE) is listed in Denmark, the close connection with Europe market also helps in its business positioning, especially with tighter Europe regulations for palm oil products.

United Plantations has relatively stronger and more defensive business than other peers in the same sector. Therefore, it is one of the few giant commodity stocks which may be considered for long term investing, in addition to short term trading, despite operating under a cyclic commodity market.

United Plantations is at low Ein55 Optimism (<25%) but recovering steadily from low in pandemic, aiming for Ein55 intrinsic value of over $20/share (about 40% potential upside). The stock is more suitable for mudium to long term investing (Buy Low Sell High), entry with consideration of short term trading is helpful to avoid price correction.

5) Malaysia Plantation Giant Stock – Genting Plantations (Bursa: 2291)

Genting Plantation is under Genting Berhad (Bursa: 3182), a giant group under severe crisis during pandemic (casino, cruise, hotel, plantations, etc). However, the strong foundation of parent company has helped to support subsidiaries (except for Genting Hong Kong with cruise business).

As a result, Genting Plantations is suitable for Crisis Investing to Buy Low Sell High, leveraging on very low prices with calculated risks. This is comparable with stock investing in Golden Agri, higher risk for higher gains (Genting Plantations is stronger than Golden Agri for relative business comparison).

Genting Plantations is still at low Ein55 Optimism (<25%) but recovering well from low in pandemic, aiming for Ein55 intrinsic value of about $17/share (about 2X potential upside but at the price of relatively higher risk). The stock is more suitable for cyclic investing (Buy Low Sell High), aligning with palm oil optimism until the bull market has ended.

6) Malaysia Plantation Giant Stock – Kim Loong Resources (Bursa: 5027)

Kim Loong Resources has strong business performance, comparable with United Plantations. It is smaller in size but a strong giant stock internally. However, due to relatively higher optimism than United Plantations, Kim Loong is more suitable for short trading or medium term investing.

Kim Loong Resources is at moderate high Ein55 Optimism (>50%, exceeding Ein55 intrinsic value). The share price is recovering well from low in pandemic, aiming for short term trading.

Register Here (Dr Tee Free 4hr Stock Webinar): www.ein55.com

Filed Under: Fundamental Analysis, Market Cycle Investing, Market Optimism, Stock Market Tagged: commodity, crisis stock investing, Malaysia Stocks

Seasonality Effect with Ex-Dividend Months on Singapore Stock Market (2009-2021)

Posted on May 31, 2021 Written by Dr Tee (Ein55)

Seasonality or Monthly Effect (stock index vs month/year) is strong for months of May and August for Singapore stock market, especially 30 STI component stocks. This is mainly related to Ex-dividend dates for 30 STI in Singapore but may not apply to smaller cap giant stocks which continue to be bullish in month of May. Learn further from Dr Tee on details of this unique Singapore stock myth.

For recent May 2021, STI ends with only 1+% lower but still it is a mini “bear” month, aligning with myth of “Sell in May and Go Away“. As we could see from the Seasonality Chart (2009 June – 2021 May) for Singapore stock market, over the past 12 years, for the month of May, 10 years were down (including this month, May 2021), only 2 years were bullish. For month of August, Singapore STI index is even worse, 11 years were down, only 1 year was up (last year, 2020, mainly due to pandemic recovery).

By right, there is no logic to strong monthly or seasonality effect (occurring 10-11 times over the past 12 years, bearish for months of May and August) but Singapore stock market is unique, especially many 30 STI component stocks are dividend stocks / REITs, certain month of ex-dividend dates, price adjustment after dividend payment could be stronger than usual stock market force of the month.

For example, out of the 6 biggest market cap STI stocks: DBS Bank (SGX: D05), OCBC Bank (SGX: O39), JMH – Jardine Matheson Holdings (SGX: J36), UOB Bank (SGX: U11), Singtel (SGX: Z74) and Wilmar International (SGX: F34) (6 stocks contributing to about 57% of STI), all 6/6 Ex-dividend in month of August while 3/6 also Ex-dividend in month of May. This may explain why Singapore stock market is nearly always bearish in the months of August and May, mainly to adjust for price after dividend payment (filling the quarterly or half-yearly dividend yield of around 1-3%), also to fulfill the global myth to “Sell in May”. MAS may adjust or lifted the 60% dividend payment cap imposed over the past 1 year for 3 major banks, this could result in strong Ex-dividend effect from Q2/2021 (starting with DBS with quarterly dividend payment), affecting more on volatility of 30 STI in coming month of August.

So, it may not be a good idea to invest in Singapore dividend stocks just before the Ex-dividend date, as the price correction (capital loss) after Ex-dividend date could be more than the dividend received. It is smarter to invest dividend stocks a few months in advance while the share price starts to recover from intermediate low due to market fear or bearish market. Alternatively, focusing on any giant stock (may or may not be dividend stocks, not limited to 30 STI component stocks) with strong price and business performance).

When there are more believers in certain myth, then it could affect the local market. Hong Kong and Japan also has similar myth, for example when movie star Adam Cheng (郑少秋) has new TV drama showing, HK share price would drop. Japan has similar related belief but influence varies.

In fact, there are quite a few small or mid cap giant Singapore stocks, eg. Propnex (SGX: OYY), Union Gas Holdings (SGX: 1F2), iFAST Corporation (SGX: AIY), The Hour Glass (SGX: AGS), Cortina Holdings (SGX: C41), Q&M Dental Group (Singapore) (SGX: QC7), Raffles Medical Group (SGX: BSL), etc, which Dr Tee has mentioned in earlier educational posts or free webinars, continue to surge over 20-30% in bearish month of May, opposite in trend with STI.

So, selection of right stocks (Level 1) in right sectors (Level 2) in right country (Level 3) is crucial. In general, Singapore and US stock markets remain relatively more bullish than other global stock exchanges since early 2021. So, it is a good choice to focus in Singapore stock market, both for short term momentum trading and long term cyclic / dividend investing.

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There are over 1500 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Ascendas Reit (SGX: A17U), CapitaLand (SGX: C31), CapitaLand Integrated Commercial Trust (SGX: C38U), City Development (SGX: C09), ComfortDelGro (SGX: C52), Dairy Farm International (SGX: D01), DBS Bank (SGX: D05), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Keppel Corp (SGX: BN4), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), OCBC Bank (SGX: O39), SATS (SGX: S58), Sembcorp Industries (SGX: U96), Singapore Airlines (SGX: C6L), Singapore Exchange (SGX: S68), Singtel (SGX: Z74), ST Engineering (SGX: S63), Thai Beverage (SGX: Y92), UOB Bank (SGX: U11), UOL (SGX: U14), Venture Corporation (SGX: V03), Wilmar International (SGX: F34), YZJ Shipbldg SGD (SGX: BS6).

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Mall Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

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Filed Under: Macroeconomy, Market Cycle Investing, Market Outlook Tagged: crisis stock investing, dividend stock, Singapore Market

Top 10 World Richest Giant Stocks (富可敌国)

Posted on February 5, 2021 Written by Dr Tee (Ein55)

Investing in Top 10 World Richest persons stocks is an easy way to share their profits from growing businesses. However, the ranking of Top 10 Richest may vary (eg. Elon Musk moves from No 30 to No 1 when Tesla price surged by 10X in 1 year) with share prices, market emotions and businesses development, especially with mixed impact of the uncertain COVID-19 pandemic.

In this article, you will learn from Dr Tee on Top 10 World Richest Giant Stocks for longer term investing or short term trading with COVID-19 recovery stock rally. Bonus for readers who could read every words of the entire article, learning unique strategy to position in each richest person giant stock.

#1) Jeff Bezos – Amazon (US NASDAQ: AMZN)

#2) Elon Musk – Tesla (US NASDAQ: TSLA)

#3) Bernard Arnault – LVMH (France PA: MC)

#4) Bill Gates – Microsoft (US NASDAQ: MSFT)

#5) Mark Zuckerberg – Facebook (US NASDAQ: FB)

#6) Zhong Shanshan – Nongfu Spring (HKEx: 9633)

#7) Larry Page – Alphabet / Google (US NASDAQ: GOOGL / GOOG)

#8) Warren Buffett – Berkshire (US NYSE: BRK-A / BRK-B) / Apple (US NASDAQ: AAPL)

#9) Larry Ellison – Oracle (US NYSE: ORCL)

#10) Sergey Brin – Alphabet / Google (US NASDAQ: GOOGL / GOOG)

Most people may think the richest persons in the world are very rich because of their profitable businesses. This understanding is partially correct as it is actually dependent on their share prices which indirectly dependent on businesses and also stock market emotions.

The real time Top 10 World Richest list is updated here. We may observe that the earlier Top 10 list (eg. retail business) are taken over by Technology Giants (dominating 7 out of 10) during the pandemic stock crisis. Let’s learn to position in these Top 10 giant stocks with either long term investing or short term trading.

#1) Jeff Bezos – Amazon (US NASDAQ: AMZN)

Amazon has evolved from a small online book seller into the largest stock in the world with ecommerce business over the past few decades. COVID-19 pandemic has helped the business to grow at faster speed in Year 2020, supporting its share price at high level, making founder Jeff Bezos to be the World Richest person (despite this position may rotate between Elon Musk, depending on daily share price).

Amazon stock is at 60% Optimism level, a strong growth stock near its fair price. Uptrend momentum in short term has been slowed down by sector rotation due to recovery of pandemic. It is more suitable for short term swing trading (Buy Low Sell High every few months) but upside may not be attractive for traders who aim for higher or quicker return.

#2) Elon Musk – Tesla (US NASDAQ: TSLA)

Elon Musk created a miracle to become the world richest person (for a short period of time, rotating this position with Jeff Bezos, depending on share prices) when Tesla share prices surged by 10 times over the last 1 year.

Tesla is a business of future, mainly based on investors believe in enormous potential of electrical vehicles, driven by 5G technology, supported by clean energy policies of major economies (eg. USA, Europe, China, etc). Despite the company has not been profitable for the last decade until 2020 (mainly due to high R&D cost), stock investing is forward looking, rising revenue (mainly China an US automotive markets) with rosy picture of next decade has supported the surge in share prices of Tesla and most automotive stocks with electrical cars.

Tesla stock is at 98% Optimism level, more suitable for trend-follow momentum trading in short term (Buy High Sell Higher) with S.E.T. (Stop Loss / Entry / Target Prices) trading plan. The growing business with greedy market emotions would continue to power this stock and entire electrical car market until the bubble is burst one day. Shorter term position is a good compromise to ride the trend while waiting for the next global financial crisis.

Elon Musk and Jeff Bezos may extend the competition of No 1 from the earth to outer space businesses, technology of future. Few people could predict the dominating technology for future, therefore it may be safer to focus in technology which are proven for the next 1 decade, eg. 5G, electric vehicles, AI, etc

#3) Bernard Arnault – LVMH (France PA: MC)

LVMH is a consumer discretionary stock (eg. luxury handbags) listed in Europe, business was temporary affected by COVID-19, resulting in a major correction in share prices. With recovery in pandemic condition, LVMH is recovering as a strong growth stock.

LVMH stock is at 80% Optimism level, more suitable to position as short term momentum stock (Buy High Sell Higher) until the COVID-19 recovery rally is over one day. Since the customers of businesses are mostly rich people, a stock investor may align with bullish stock market to enter or hold the position, exiting when the next black swan comes in future.

#4) Bill Gates – Microsoft (US NASDAQ: MSFT)

#8) Warren Buffett – Berkshire (US NYSE: BRK-A / BRK-B) / Apple (US NASDAQ: AAPL)

Bill Gates and Warren Buffett are good friends, even their stocks are inter-related. Warren Buffett donates Berkshire stock to Bill Gates and Melinda Gates Charity Fund, contributing to 45% share ownership of Bill Gates stock portfolio. At the same time, Bill Gates has sold most of the Microsoft shares (only keeping about 1%), focusing in charity project with a portfolio of giant stocks. Berkshire invests in a portfolio of global giant stocks including 40% in Apple, founded by Steve Jobs, which is a competitor of Microsoft.

So, it is interesting that the fate of these 3 giant stocks are integrated together in the same boat: Berkshire, Apple and Microsoft. Microsoft has evolved beyond PC into other high businesses such as cloud services and gaming. Apple is transforming from PC to mobile phones, even planning on Apple Car to compete with Tesla in future. Berkshire (through Warren Buffett) is the smartest, no need to work hard on any business, simply making decision to invest in the right stocks (eg. average up on Apple stock investing).

Optimism levels of these 3 stocks are 90% (Microsoft), 50% (Apple) and 60% (Berkshire) respectively. Microsoft is more suitable for short term swing trading (Buy Low Sell High) while Apple and Berkshire may be considered for short term momentum trading or even growth investing for long term (moderate optimism at fair value).

Both Microsoft and Apple have dominated the world technology for the past few decades, having potential to continue the influence for another decade with condition the businesses must evolve at the same time with new technology. It is hard to invest in any technology stock for long term as few technologies could last over 1 decade without challenges of disruptive technologies. So, technology stock investors need to monitor the evolution of technology (which contributes to 7 of 10 Top 10 World Richest persons stocks) at least yearly.

#5) Mark Zuckerberg – Facebook (US NASDAQ: FB)

Facebook rises fast with popularity of internet, leveraging on power of networking with 3 billion global users, supporting founder Mark Zuckerberg to be the youngest Top 10 World Richest person. Even Facebook co-founder, Eduardo Saverin, becomes Singapore Top 10 Richest persons, but no need to work, simply holding tight to Facebook stock ownership.

Facebook stock is at 35% Optimism level. It is a strong young growth giant stock but short term momentum is slowed down with sector rotation during recovery phase of pandemic. It is more suitable for short term swing trading (Buy Low Sell High) in the current stock market.

#6) Zhong Shanshan – Nongfu Spring (HKEx: 9633)

By right, this position (China No 1 richest person, world Top 10 richest person) should be reserved for Jack Ma of Alibaba but due to abandon of IPO of Ant Group, it is taken over by Zhong Shanshan, the founder of both Nongfu Spring and Beijing Wantai Biological Pharmacy (China Shanghai: 603392).

Nongfu Spring is at 50% Optimism level but more meaningful for short term momentum or swing trading as it is still a very young stock with IPO less than 1 year. Political economy has strong influence on China related stocks (recent stock correction of Alibaba is a good example), therefore more speculative in nature. Diversification is key for investing in China related stocks.

Currently, out of Top 10 World Richest, 8 are from US stocks, 1 from Europe stock, 1 from China stock. This shows the strength of US as No 1 economy with the most number of richest people with giant businesses. In the near future, more China stocks may join this Top 10 World Richest list (eg. Jack Ma but only if Ant Group could get approval for IPO).

#7) Larry Page – Alphabet / Google (US NASDAQ: GOOGL / GOOG)

#10) Sergey Brin – Alphabet / Google (US NASDAQ: GOOGL / GOOG)

Both Larry Page and Sergey Brin are co-founders and major shareholders of Google (Alphabet stock), therefore naturally both are listed in Top 10 World Richest list. During pandemic, Google reported stronger business growth, similar to other technology giant stocks which profit from COVID-19 crisis. In future, Google may also share a pie of electrical car industry with its AI and car system development, extending from search engine and mobile phone system businesses, into other future technologies with extensive R&D for decade.

Alphabet (Google) stock is at 70% Optimism level, both a growth stock for investing and momentum stock for short term trading. Unlikely other giant technology stock, growth of Google is more sustainable (moderate), may be considered for longer term investor, therefore each future global stock crisis will be an opportunity for investing (Buy Low & Hold) until Google may become an outdated technology stock (similar to Nokia, Yahoo or Motorola, which has been obsolete or out of fashion). Therefore, a giant technology stock has to continuously develop future new technology, renewing itself to remain competitiveness and lifespan of a giant.

#9) Larry Ellison – Oracle (US NYSE: ORCL)

Oracle is a software giant stock, supporting the founder Larry Ellison to be the Top 10 World Richest person. Position of No 9-10 are marginal, changes in daily share prices may change ranking easily. So, the key may not be to invest in the highest position of Top 10 list but to use the list a reference, filtering giant stocks with growing business, ideally entering during stock market crisis (without affecting the business).

Oracle stock is at 50% Optimism level, more cyclical in business than other Top 10 World Richest stocks It may be considered for both cyclical investing and swing trading.

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90% of majority wealth in the world is with 10% of minority in rich people. Therefore, a smart stock investor may align interest with the Top 10 Richest persons in each country or in the world. However, it is important to focus in only 10-20 giant stocks with sustainable business with forward looking economic moat, diversifying over several sectors (instead of investing in only 1 sector, eg. technology, which may suffer in version 2.0 dotcom bubble one day). There are also many other little giant stocks which are relatively less well known but having more upside potential in stock prices than the famous giant stocks of the richest persons.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar, you could ask on any global and local stocks including but not limited to 30 STI component stocks:

Ascendas Reit (SGX: A17U), CapitaLand (SGX: C31), CapitaLand Integrated Commercial Trust (SGX: C38U), City Development (SGX: C09), ComfortDelGro (SGX: C52), Dairy Farm International (SGX: D01), DBS Bank (SGX: D05), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Keppel Corp (SGX: BN4), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), OCBC Bank (SGX: O39), SATS (SGX: S58), Sembcorp Industries (SGX: U96), Singapore Airlines (SGX: C6L), Singapore Exchange (SGX: S68), Singtel (SGX: Z74), ST Engineering (SGX: S63), Thai Beverage (SGX: Y92), UOB Bank (SGX: U11), UOL (SGX: U14), Venture Corporation (SGX: V03), Wilmar International (SGX: F34), YZJ Shipbldg SGD (SGX: BS6).

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Mall Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

Filed Under: Market Cycle Investing, Market Outlook, Stock Market Tagged: crisis stock investing, growth stock, momentum stock, US Stocks

7 Stocks Recover in COVID-19 Crisis (牛市回弹)

Posted on December 21, 2020 Written by Dr Tee (Ein55)

Global stock markets are recovering steadily with availability of vaccines for COVID-19 which may end the crisis in 12 months. At the same time, new US President, Joe Biden, may print more money with QE, an easy way for stock market to surge. Smart investors would grab on this rare opportunity to Buy Low for a portfolio of giant stocks with high potential to recover.

In this Dr Tee 1.5-hr video education (7 Stocks Recover in COVID-19 Crisis), you will learn Market Outlook 2021 for Singapore and Malaysia with 7 crisis stocks recovering in 7 sectors during pandemic, having high upside potential:
1) Keppel Corp (SGX: BN4) – Oil & Gas Crisis Stock
2) SATS Limited (SGX: S58) – Airlines Crisis Stock
3) Raffles Medical Group (SGX: BSL) – Healthcare Crisis Stock
4) Capitaland Integrated Commercial Trust, CICT (SGX: C38U) – REIT Crisis Stock
5) Hongkong Land (SGX: H78) – Property Crisis Stock
6) OCBC Bank (SGX: O39) – Bank Crisis Stock
7) Cortina Holdings (SGX: C41) – Consumer Discretionary Crisis Stock

Here is Dr Tee Free 1.5-hr Video Course (suitable for bilingual learners: verbal presentation in Chinese, written notes in English, technical charts for everyone). Enjoy and give your comments for improvement. You may subscribe to Dr Tee Youtube channel (Ein Tee) for future Dr Tee video talks.

Dr Tee Video Course: https://youtu.be/F-wWE2Bz33o

在这Dr Tee 1.5小时教育视频（牛市回弹的七只危机股），您可学习：
1) 吉宝企业 (SGX: BN4) – 油气危机股
2) 新翔 (SGX: S58) – 航空危机股
3) 莱佛士医疗 (SGX: BSL) – 医疗危机股
4) 凯德综合商用新加坡信托 (SGX: C38U) – 房地产信托危机股
5) 香港置地 (SGX: H78) – 房地产危机股
6) 华侨银行 (SGX: O39) – 银行危机股
7) 高登 (SGX: C41) – 非必需消费品危机股

这儿是 Dr Tee 免费1.5小时华语课程（适合双语学员：华语表达，英语讲义，图表皆通）。请欣赏鄙作，留言求进步。您可订阅 Dr Tee Youtube 频道(Ein Tee)，链接未来投资视频。

Dr Tee 华语视频: https://youtu.be/F-wWE2Bz33o

Filed Under: Market Cycle Investing, Stock Market, Value Investing Tagged: covid-19, crisis stock investing, video education

Boat of Opportunity Coming for COVID-19 Stock Rally

Posted on November 25, 2020 Written by Dr Tee (Ein55)

COVID-19 vaccine likely will get FDA approval soon, then will be injected ASAP to millions of people globally by end of Dec 2020, before extending to billions of people in the next 6-12 months to end the pandemic permanently. In fact, even 2/3 people are protected, enough to terminate COVID-19 virus naturally as spreading path will be limited when over 60% people have immunity.

Stock market is forward looking, economy is the “master” who walk the “dog” which is stock market taking the lead. For conventional investor who waits for confirmation of economy recovery may miss the early boat of COVID-19 stock crisis recovery rally

There are 2 main investing and trading strategies during any major stock crisis (including COVID-19 pandemic):

1) Average Down (Bear Market)

This is mainly suitable for cyclic / dividend / undervalue stocks which share prices are declining into lower optimism. Dividend yield of 2% – 10% would help to strengthen holding power of investor during “winter time” of stock crisis. Now it is the time for this group of contrarian investors to benefit in coming summer of bullish stock market with tremendous capital gains.

2) Average Up (Bull Market)

This is mainly suitable for growth / momentum stocks with uptrend prices, eg technology / software and COVID-19 beneficiary stocks (eg healthcare, glove, etc). This strategy is sensitive to price trend (especially momentum trading), therefore recently there is sector rotation with changing of momentum to COVID-19 affected stocks (those average down stocks now become potential average up stocks).

It is fine if stock investors have missed the past 8 months of stock “crisis” to buy low (i.e. average down). Now the investors should not miss the change of “average up” but careful choice of growth / momentum stocks in the right sector is crucial for success as share price is getting higher (but still moderate low optimism).

The old saying of “Crisis is Opportunity” is correct for the past decades of market cycle every 5-10+ years, again proven correct for COVID-19 stock crisis. However, this is conditional the investment has to be a giant stock. If not, “Buy Low” may “Get Lower” or even going bankrupt.

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Congratulations to success of Ein55 graduates who dare to overcome own biggest enemy (oneself) to take action, “Be Greedy when others are fearful”. I have received many positive students feedback, here are a few examples:

– over 40% DBS gains + over 20% OCBC gains when investing since Mar 2020

– over 50% gains in Nov 2020 for an US giant bank stock (cyclic)

– over 40% gains in an online HR technology stock (growth)

– over 25% gains in Nov 2020 for 2 oil & gas giant stocks (cyclic + dividend)

– and many other global giant stocks (there are total over 1500 giant stocks following Dr Tee giant stock criteria).

It is never too late to learn stock investment. You have not missed the investment opportunity yet (despite recent stock rally) as there are at least 10 different strategies in stock investing and trading, some adjustments are required for the current global stock market, different from the past 8 months of pandemic. It is important to master the skills quickly within the next 6 months, in order not to miss the last few boats of opportunities for COVID-19 stock crisis (should be called “rally” now).

Once day, the rally would become crisis again, therefore an investor has to master such investment clock for Stocks, Properties, Forex (including bitcoin), Commodities and Bonds.

Filed Under: Macroeconomy, Market Cycle Investing, Stock Market Tagged: covid-19, crisis stock investing, cyclic investing stock, stock rally

Dr Tee Family 100 Years Investing Strategy (百年树人)

Posted on August 26, 2020 Written by Dr Tee (Ein55)

Parents are our best role models for life including investing. Dr Tee will share in this article, both valuable life principles learned from his father (who passed away recently) and also a lifetime investing strategy with 100% success rate practiced by his parents, applicable in both stock and property markets.

Bonus is Dr Tee Grandparents Crisis Investing Strategy for reader who could patiently read the entire article. This investing strategy is proven over 3 generations of Dr Tee family over the past 100 years.

Many people hope to learn a “sure-win” investing strategy. For most practical considerations, there is a certain probability of success for each stock trading or investing strategy but rarely could achieve 100% success rate.

Dr Tee parents have a remarkable achievement to have 100% winning record in both stock and property investment consistently over the past few decades. This lifetime investing strategy may not be suitable for everyone, requiring alignment of similar personality as Dr Tee parents. Let’s learn the details here.

Some people may change mind easily, even for a good investment (stock or property), if the market prices fall down significantly, some may end up sell low with losses under tremendous fear. Alternatively, some people could hold an investment for long term, even over a lifetime but due to declining businesses, suffering permanent losses over time.

Dr Tee parents’ “Sure-Win” Strategy is simple but only if one could align with similar personality (work hard + take right investment action). Here are the 3 main steps:

1) What to Invest

For stock investment, Dr Tee parents prefer giant stocks from country stock index component, especially those with strong business fundamental stocks with good track record (both capital gains and dividend payout) over the past decades.

Property (house or land with high quality asset) by default is a giant, therefore also a key option for their investment. Their main source of investment knowledge was through reading local newspaper investment articles and discussion with friends having similar interest.

This “100% winning” strategy requires support of a portfolio of giant stocks (reviewing giant stocks status yearly for possible change in business fundamental). Many giant stocks could be found in a country stock index. For example, these are 30 STI component stocks, could be a possible starting point for lifetime investing for an investor in Singapore:

DBS Bank (SGX: D05), Singtel (SGX: Z74), OCBC Bank (SGX: O39), UOB Bank (SGX: U11), Wilmar International (SGX: F34), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Thai Beverage (SGX: Y92), CapitaLand (SGX: C31), Ascendas Reit (SGX: A17U), Singapore Airlines (SGX: C6L), ST Engineering (SGX: S63), Keppel Corp (SGX: BN4), Singapore Exchange (SGX: S68), Hongkong Land (SGX: H78), Genting Singapore (SGX: G13), Mapletree Logistics Trust (SGX: M44U), Jardine Cycle & Carriage (SGX: C07), Mapletree Industrial Trust (SGX: ME8U), City Development (SGX: C09), CapitaLand Mall Trust (SGX: C38U), CapitaLand Commercial Trust (SGX: C61U), Mapletree Commercial Trust (SGX: N2IU), Dairy Farm International (SGX: D01), UOL (SGX: U14), Venture Corporation (SGX: V03), YZJ Shipbldg SGD (SGX: BS6), Sembcorp Industries (SGX: U96), SATS (SGX: S58), ComfortDelGro (SGX: C52).

For different country, an investor may start with local stock indices with component stocks, eg. 30 KLCI stocks, 50 HSI stocks, 30 Dow Jones stocks, S&P 500 stocks, 50 SSEC stocks, Top 10 largest NASDAQ stocks, etc. Subsequently, analyze business fundamental and other critical criteria for giant stocks. Here is a list of 30 Malaysia Bursa KLCI Index component stocks which may be considered for Malaysia stock investors:

2) When to Invest

Dr Tee parents only have middle-class income from active jobs, which salary in cash would depreciate over time. When they got married about 60 years ago in Muar (a small town in Johor of Malaysia), both were having little starting capital. Since young, over 4 decades of working hard, they would gradually convert the cash saving into another form of “fixed deposit” through purchases of stocks (both private and public listed companies) and properties (houses and plantations), which could generate passive incomes (eg. stock dividends and property rentals, much higher than bank interest rates) and consistent growth with enormous capital gains.

Besides regular conversion of cash into saving (spending very little on themselves, saving every dollar possible for family with 4 children), later into stocks or properties, Dr Tee parents would invest more during financial crisis, especially when they observed the stock index (eg. KLCI Index as they live in Malaysia) was at relatively low level or when there was special sales of house or land below the market prices.

Dr Tee parents worked very hard (like a habit) for whole life, even after they have retired, could not rest well for 1 day, must find something to do each day in kampung. To them, this is their ideal lifestyle to keep busy (but not stressful) each day. Dr Tee wished they could be more relaxed but looking back now, this could be blessing in disguise as some retirees who relaxed too much, may age even faster.

3) When to Sell

Most of the time, Dr Tee parents would not sell stocks or properties, keeping them long term over lifetime, collecting both passive incomes (which can be used for family expenses or reinvest again) and capital gains. Sometimes when stock index or investment is at high optimism level, they would sell but most of the time, they would simply ignore them, keeping as “fixed deposit” which could compound each year for decades through stocks and properties. Apply this simple method of investing (buy stocks as if property for many generations to stay) on giant stocks, naturally the success rate is 100% over the decades, overcoming all the stock “crisis” eventually.

In a certain period of time for about 10 years, due to high cost to support 4 children (Dr Tee and 3 siblings) university education in US (ringgit was weak vs USD), they decided to sell significant private shares of palm oil plantation (with many times of capital gains). This was rare for them to sell properties or stocks to convert back into cash but children (especially education) are their most important goal in life. They strongly believe that knowledge is the best investment to generate more wealth (eg. with a better job) to support a better future life.

Dr Tee parents were working very hard, saving almost every dollar they could during this period, spending very little on themselves, saving and then investing mainly to provide additional financial shield for children. History seems to repeat itself, it is turn for Dr Tee to do similar planning for family with children. However, Dr Tee could still have reasonable spending (disagree with parents who almost did not spent much on themselves) as children should also work hard to enjoy fruits of life with own creation of wealth. This way, the “shield” contributed by each generation could be compounded to protect against a major future crisis. If not, wealth could not last through 3 generations with spending alone.

Financial literacy could be the best gift for any young generation. Dr Tee is amazed that a few Ein55 graduates are as young as 14 years old (learning together with parents), could understand and apply value investing principles. With compounding return of many decades to come, knowing what giant stocks to invest, these young learners main goals would be to work hard and save more for capital to start the first investment of life one day.

This “Buy Low and Hold” strategy for long term or even lifetime suit Dr Tee parents personalities. Some people may not have patience to hold or wish to sell earlier for capital gains to enjoy life, therefore missing the natural compounding growth of giant stock or property, hedging against inflation. To maximize the compounding over lifetime, one has to start investment younger. Assuming 50 years of lifetime investing (eg. 30 to 80 years old) with average of 10% growth rate, capital gains could be as high as 1.1^50 = 117 times. Even with a minimal 5% growth rate over 20 years (eg. 40 to 60 years old when retiring), capital gains could be 1.05^20 = 2.65 times.

So, this “sure-win” strategy could be very simple (tested over 100 years with 3 generations) but could be very tough as some people may not able to make sacrifice in life (eg. not willing to invest in oneself to enhance knowledge in own profession or investment), simply wait for gift to drop from heaven (most of the time are speculative news, ending up with big losses). So, heaven is fair, usually reward those who work hard and follow the right path of investing, even if one forgets about making money one day (eg. Buy Stocks / Properties and Forget), hidden fortune would appear naturally one day when needed.

So, the secrets of making money in investment is not to think of making money, just do the right proven actions, eg: investing over a portfolio of 10-20 giant stocks, buying more during financial crisis, holding long term, then the compounded return would come naturally one day.

My Father Story

Similar to investment, life also has its own cycle. My father (Mr Tee Ching Sin, 郑清森) passed away peacefully recently due to natural aging. Over the past 10 years, this has been my biggest worry to receive unexpected call from parents in Malaysia which could be potential sad news. The day still comes with expected call when I was halfway conducting a Zoom coaching class, need to hold my tears to complete the program as this is a commitment, a value shared by my father.

When I observed my parents have been getting older each year, I started to slow down the pace of my work or interest in investment education (used to work 365 days a year, 7 days a week, working nearly all the time), visiting them more often in Malaysia over the past few years. Each time when I said farewell to them when returning to Singapore, I was thinking could this be the last time we meet in life.

More importantly, my father has taught me many positive values in life (not just making money with investment), setting an excellent example with his whole life. Despite he has left the world, sometimes I could still “hear” his voices which is embedded in the subconscious mind (similar to Artificial Intelligence, AI). This is how a “spirit” or family value could be transmitted between the generations.

Similarly, I often use “Dr Tee” as third person narration when teaching investment knowledge to students or writing articles (eg. Dr Tee aims for “giant stocks”, investing when giant is falling during crisis, etc), hopefully this could help to form positive habits of investment in a faster way with AI into their minds when they hear “Dr Tee voices” in their subconscious mind one day.

This article is a special tribute to my father, a short summary of his successful life, not only with “sure-win” investing strategy and hardwork over lifetime, but also for his selflessness to think of family first. It is a regret that there is travelling restriction to Malaysia during pandemic (requires 14 days quarantine), together with 2 other siblings living outside Malaysia, we join the online ceremony to pay the last respect to our father.

My father dedicated his whole life for family but reward little to himself. During his funeral ceremony today, I have shared my feeling remotely in Chinese (you may use google translator if needed) to him:

爸爸，您是我们心目中，敬重的父亲。

您的3个孩子，姐姐，二哥和我，身在海外，因为疫情的情况下，国家限制旅游，不能回来尽孝，我们庆幸过去与您保持密切联系，亲情永在，不限一时。

爸，身为您的儿女与亲友们，舍不得与您告别。

纵然您已离开尘世，浩瀚宇宙中遨游，您不朽的精神，将永远留在我们心里。

爸爸，多谢您一生无私的付出，栽培了我们四个孩子，海外留学，开阔视野。教育是您留给我们最珍贵的资产，我们也继承了您的精神与理念，与后代分享。

年轻时，为了给家庭增强经济后盾，您毅然放下教鞭，从事繁重的经商活动，过度劳累，透支身心。晚年时，纵然行动不便，您意志顽强，坚持独立活动，心灵手巧，甚至到人生最后一刻。

言传不如身教，您是我们的人生楷模。我们从中观察，学习宽容待人，刻苦节俭，不畏失败，活出自我。孩儿东渊记得，曾经问您为何不多花一分钱在自己身上，却慷慨帮助孩子们与他人。您说人生已无遗憾，家人安康就是最大的满足。

爸爸，请您放心，我们会照顾好妈妈。您的一生是成功的，无憾无悔，不枉此生。我们衷心感激您为家庭的无偿付出。

爸爸，愿您一路走好，我们爱您，永远怀念您。

Suddenly, I remember this old song by Taiwanese singer (高凌風 – 牽不住你的手, “Could Not Hold Your Hands”), now finally I could understand the meaning as he wrote this song when losing his father many years ago: https://www.youtube.com/watch?v=xQmQllux1bo

I was hoping to hold my father hands for the last time. I tried to appeal to Malaysia High Commission in Singapore by queuing up before 8am (hope to enter Malaysia without quarantine if pass COVID test in 1-2 days) but standard answer was to fill in online form (which has no option of funeral, mainly ask to sign to agree to pay for 14 days quarantine in hotel after entry to Malaysia with on-site test) and wait for reply which response time is not guaranteed. I sadly called ICA of Singapore for help (hoping there is some special agreement between 2 countries on travelling for special case of funeral, not just on businesses), standard answer is entry to Malaysia depends on Malaysia policy. So, the recent bi-lateral “Reciprocal Green Lane” may not have considered hundreds of thousands of citizens with close elderly family members in both countries (Singapore and Malaysia were 1 country before, hard to separate families apart with a political border). COVID-19 crisis is not only a health and financial crisis, may also be a family crisis.

I am relieved that online technology (Whatsapp Group Video) has helped to lessen this potential biggest regret in my life. My siblings and I who are abroad Malaysia could follow entire funeral ceremony remotely in an interactive way, praying and talking to my father who rest peacefully, knowing all his children would get united again regardless of obstacles. Except I could not hold my father hands anymore.

I remember a unique subject studied in university time in US several decades ago: “On Death & Dying”. The funeral services are not just for the deceased, also for those who are alive to heal their wounds in heart. It is a way to accept and adjust to new norm in life without the loved one (switching connection from physical to spiritual).

Looking back, I believe my father may have special plan in choice of timing to depart us (knowing that I would try different ways to get there to see him for the last time). Perhaps this was his intention not to trouble 3 of children abroad, not to take any risk in travelling. If so, I may need to thank the authority with hard rules for helping my father to achieve his final wish to help family again.

Father, please Rest in Peace. The best way to repay your kindness in lifelong support is to maximize values of my own life which I promise won’t disappoint you!

Dr Tee’s Grandparents Story

In fact, Dr Tee parents also learned from their parents who have similar personality of working hard, despite low income but knowing how to invest to improve on quality of life. Dr Tee grandparents were very poor (not having any formal education, could only do lower income work) when first came from China to Malaysia nearly 100 years ago.

After many years of working and saving little by little, Dr Tee grandparents grabbed the rare opportunity of Japanese occupation time (1940s) to use life saving in “banana money” to buy a small piece of land with rubber plantations at very low price (a form of crisis investing during World War II), holding for 80 years till today with about 2000 times capital gains.

Many people lose money in saving cash when Japanese “banana money” became zero value overnight but Dr Tee grandparents converted the cash (paper value) into land (high quality asset), therefore reversing the family poverty destiny, converting crisis into opportunity. With the first foundation (plantation could generate incomes), they continue to improve family financial condition with more purchases of land with hard earned savings (but similar crisis of low land price was only once a lifetime).

Dr Tee grandparents success (hardwork with special help of crisis investing in property) has changed the future of Tee family (from poor to middle class). This inspired Dr Tee parents to follow similar track of working hard and invest when young (but extending from properties to stocks). Crisis investing of high quality assets at low price is a high probability of winning if one has holding power.

Similarly, the success of last 2 generations has motivated Dr Tee to study hard (aiming for highest educational level of PhD), then work hard to achieve the career goals (climbing ladder till VP in corporate world, then CEO of own company after becoming financial free) and extending investment from long term investing to short term trading, developing an universal way of “Buy Low Sell High” with Ein55 styles of investing for stocks, properties, bonds, commodities and forex.

Dr Tee owes the current success (both personal life and investment) to contribution of 3 generations of Tee family over the past 100 years. The same principles of life (work hard with simple life) are not just passed to 4th generation but also shared with over 3000 Dr Tee graduates and over 300,000 public audience over the past 10 years.

Even if you not Tee family member, could you duplicate this simple secret of success in life with “Sure-Win” strategy? Answer is yes but not everyone could do it. A person must be willing to have a determination of working hard (or study hard in early age) for life, spending little on oneself, converting saving into higher growth investment with a portfolio of giant stocks or properties, investing more during financial crisis time, then holding for high growth over lifetime.

If you could read every word of this article until this here, you have the potential to be the first generation of your family to inspire future generations for another 100 years (百年树人)!

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Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar.

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Mall Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

Filed Under: Fundamental Analysis, Market Cycle Investing, Personal Analysis, Stock Market Tagged: Blue Chip Stocks, crisis stock investing, lifetime investing

2 Free eBooks by Dr Tee (Click to Download)