If break 920, go long. If break 908, go short !
Monday, October 20, 2008
10:16 am - Market Outlook by Bill Wermine
Dear Traders,
I have had a number of calls this week, " Should I sell all my shares ? Is Malaysia in recession? Everything is so bad. I am depressed. All the economic news on TV is bad. Major banks in the world are collapsing- Is it safe to keep my money in the bank ? Is the Man Fund Capital guaranteed still a guarantee ? What if NAB Bank in Australia who underwrites the Man capital guarantee goes bust? Do I lose all my money ?
Fear is at the absolute extreme. Perhaps at the 1931 depression levels- It is as though Chicago was hit by a nuclear bomb !
My advice: DO NOT THROW AWAY YOUR QUALITY SHARES or your Man Investments. (Man AHL made a 7 % return in September covering the JUly and August loss)
Here is the reality: Warren Buffet has opened his wallet to buy for his own account. When he opens his wallet we are close to a bottom. The news is creating the fear and panic and driving the herd of sheep to the slaughter house. The tigers of the market are enjoying the feast.
Look at facts and logic: Credit and oil are the lifeblood of the world economy- oil has collapsed which gives a huge economic boost but the media and most investors are not discounting the almost 50 % drop in crude oil. Credit is beginning to unfreeze. This will cause the US dollar to drop, AUD/MR rate to move in the AUD favor and commodities to pick up and the KLSE/world markets to begin a recovery. Just like our body- when we suffer an injury it takes time to heal. The healing has started.
On Wednesday, you are invited to a private event: Please let me know your questions about current performance/capital guarantee so we can ask Sam.
Mr Sam Gibson from Man Investments will share on how alternative investment can help to enhance your total portfolio while Our CIO, Mr Ang Kok Heng will share his views on the advantages of foreign investments and the analysis on historical performance of Man Investment funds.
Details of the talk are as below:
Date : 22 October 2008 (Wednesday)
Time : 7.00pm - 9.45pm
Venue : Kristal Ballroom 1,
1st Floor East Wing, Hilton Petaling Jaya Hotel,
No 2 Jalan Barat,
46200 Petaling Jaya.
7.00 pm Registration
7.30 pm Alternative Investment Opportunities Through Man Investment
by Mr Sam Gibson of MAN Investment
8.30 pm BREAK*
8.45 pm Voyaging the Financial Tsunami
by Mr Ang Kok Heng, Chief Investment Officer of Phillip Capital Management Sdn Bhd
9.45 pm Question and Answer Session
*Refreshments will be provided.
Please RSVP with Azimah at 03-2711 3038 or email me This seminar is free of charge.
DOW 30 Futures with support building off a double bottom. It takes time to heal. TG issued a classic shakeout signal on 13 October showing that scared sellers are giving to strong hand smart money buyers. Despite the doom and gloom Malaysia is much stronger economically than the US. The political problems in Malaysia are a storm in a teacup and have nothing to do with the supply and demand for CPO etc. .
I have had a number of calls this week, " Should I sell all my shares ? Is Malaysia in recession? Everything is so bad. I am depressed. All the economic news on TV is bad. Major banks in the world are collapsing- Is it safe to keep my money in the bank ? Is the Man Fund Capital guaranteed still a guarantee ? What if NAB Bank in Australia who underwrites the Man capital guarantee goes bust? Do I lose all my money ?
Fear is at the absolute extreme. Perhaps at the 1931 depression levels- It is as though Chicago was hit by a nuclear bomb !
My advice: DO NOT THROW AWAY YOUR QUALITY SHARES or your Man Investments. (Man AHL made a 7 % return in September covering the JUly and August loss)
Here is the reality: Warren Buffet has opened his wallet to buy for his own account. When he opens his wallet we are close to a bottom. The news is creating the fear and panic and driving the herd of sheep to the slaughter house. The tigers of the market are enjoying the feast.
Look at facts and logic: Credit and oil are the lifeblood of the world economy- oil has collapsed which gives a huge economic boost but the media and most investors are not discounting the almost 50 % drop in crude oil. Credit is beginning to unfreeze. This will cause the US dollar to drop, AUD/MR rate to move in the AUD favor and commodities to pick up and the KLSE/world markets to begin a recovery. Just like our body- when we suffer an injury it takes time to heal. The healing has started.
On Wednesday, you are invited to a private event: Please let me know your questions about current performance/capital guarantee so we can ask Sam.
Mr Sam Gibson from Man Investments will share on how alternative investment can help to enhance your total portfolio while Our CIO, Mr Ang Kok Heng will share his views on the advantages of foreign investments and the analysis on historical performance of Man Investment funds.
Details of the talk are as below:
Date : 22 October 2008 (Wednesday)
Time : 7.00pm - 9.45pm
Venue : Kristal Ballroom 1,
1st Floor East Wing, Hilton Petaling Jaya Hotel,
No 2 Jalan Barat,
46200 Petaling Jaya.
7.00 pm Registration
7.30 pm Alternative Investment Opportunities Through Man Investment
by Mr Sam Gibson of MAN Investment
8.30 pm BREAK*
8.45 pm Voyaging the Financial Tsunami
by Mr Ang Kok Heng, Chief Investment Officer of Phillip Capital Management Sdn Bhd
9.45 pm Question and Answer Session
*Refreshments will be provided.
Please RSVP with Azimah at 03-2711 3038 or email me This seminar is free of charge.
DOW 30 Futures with support building off a double bottom. It takes time to heal. TG issued a classic shakeout signal on 13 October showing that scared sellers are giving to strong hand smart money buyers. Despite the doom and gloom Malaysia is much stronger economically than the US. The political problems in Malaysia are a storm in a teacup and have nothing to do with the supply and demand for CPO etc. .
Have a good week
Bill
Saturday, October 18, 2008
5:40 pm - More bad news from DJIA
Fallout from financial crisis hammers housingSaturday October 18, 4:57 am ET By Martin Crutsinger, AP Economics Writer
Financial crisis takes toll on battered housing market; Wall St. ends week with relative calm
WASHINGTON (AP) -- The nation is on track to build fewer homes this year than at any time since the end of World War II, adding to the woes of an economy that analysts said Friday has almost certainly entered a recession.
While the economic outlook darkened even further with bad reports on layoffs and consumer confidence, it was one of the quietest days since the financial meltdown began a month ago. Wall Street's tumultuous week turned out to be its best in five years.
The Dow Jones industrial average lost 127 points Friday but turned in the strong week because of two huge days of gains -- a record 936-point jump on Monday and an increase of 401 points Thursday.
Friday was still marked by the huge swings that have become typical lately. At various points the Dow was up nearly 300 points and down nearly 250, and it finished with a triple-digit move for the 22nd time in 25 trading sessions.
A monthly survey by the National Association of Home Builders showed sentiment among home builders hit a record low in early October.
David Seiders, chief economist for the group, said builders are being hit by a double whammy from the financial turmoil: It's harder for them to get loans to pursue new houses, and more difficult to sell those they do build.
He forecast that builders will keep slashing production in coming months, with construction starts for new homes and apartments totaling just 936,000 this year, the lowest level since 1945.
"The builders are telling us that the financial crisis is really hurting because people justifiably have no idea where things are going," Seiders said.
Before the markets opened, President Bush went to the headquarters of the U.S. Chamber of Commerce to say that the $700 billion financial rescue package was "big enough and bold enough to work."
But he cautioned that it would take time to unlock credit markets.
Adam Levitin, an associate professor at Georgetown University Law School, said that even with the government's injection of billions into the banks, the high debt loads carried by consumers and shortage of creditworthy borrowers could continue to chill lending.
"Who's going to lend to GM right now?" Levitin said at a conference organized by the American Bar Association. He also asked what banks would lend money to homeowners with troubled mortgages.
Analysts said new data released Friday showed it's probably too late for the economy to avoid a recession.
Many of them said they now had recessions in their forecasts, believing that the overall economy, as measured by total domestic production, probably shrank in the July-to-September quarter, dragged lower in part by the continued plunge in housing.
"I don't think there is any ambiguity with respect to whether we are in a recession," said Mark Zandi, chief economist at Moody's Economy.com. "I think it actually started at the end of last year, and because of the financial panic we are going through now, it is likely to last another year."
Other economists said they were looking for at least three consecutive quarters of contraction, reflecting in part the fact that consumers, who account for two-thirds of total economic activity, are showing the strains of the biggest upheaval in the financial sector in 70 years.
A new University of Michigan/Reuters survey showed consumer confidence plunged in early October to its second-lowest level in the past 28 years.
"Concerns about falling employment, incomes and wealth have overshadowed relief from lower energy prices," said Sara Johnson, an economist at Global Insight, a Lexington, Mass., forecasting firm.
The Commerce Department said Friday that construction of new homes and apartments dropped by a bigger-than-expected 6.3 percent in September to an annual rate of 817,000 units, the second weakest performance in government statistics dating back to 1959. The only weaker monthly showing occurred in January 1991, when the U.S. was in a recession and going through a similar painful housing correction.
In a bleak sign of future construction, applications for new building permits fell a sharp 8.2 percent to an annual rate of 786,000 units, the weakest level in more than 25 years.
The government also sharply revised lower its construction data for July and August. That was after dismal news earlier this week that retail sales fell by 1.2 percent in September.
Influential billionaire investor Warren Buffett said in opinion piece in The New York Times that he sees opportunity in the Wall Street chaos. He's been moving his personal investments from safe Treasuries into U.S. stocks.
"To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions," Buffett wrote. "But fears regarding the long-term prosperity of the nation's many sound companies make no sense."
The market eventually will turn around. "So if you wait for the robins, spring will be over," he said.
On the housing front, while the sharp cutbacks in production will help reduce huge inventories of unsold homes, the problem is that rising levels of foreclosures are dumping more homes on the already glutted market.
Zandi said he believed that home prices, which have already fallen by 20 percent, will fall by another 10 percent and will not stabilize until the middle of next year.
Kim Shelpman, the chief executive of Holiday Builders, which operates in Texas, Florida, Alabama and South Carolina, said that her company was competing against a rising tide of foreclosures, but that she believed the excess inventory of homes was being "eaten up at a much quicker pace."
Jesse Barrington, a sale consultant with Sotherby Homes, said the sales slowdown nationwide had been less pronounced in the upscale suburbs of north of Dallas where about 20 homes in a new subdivision had recently sold.
"In a normal economy, this is a good year. In this economy, it's phenomenal," he said.
In the South, sales managed a small 0.5 percent gain in September. They rose by 5.6 percent in the Midwest, where a boost in apartment building offset a slide in single-family homes to a record low.
The weakness last month was led by a 21 percent drop in the Northeast, where construction of single-family units fell to the lowest level on record, and the West, where building slipped by almost 17 percent with single-family construction also hitting a record-low in that region.
On Tuesday, the Treasury Department announced it would inject up to $250 billion in U.S. banks in return for partial ownership stakes, in a program similar to one launched in 1932 by President Herbert Hoover. The government hopes banks will use the capital infusions to rebuild their reserves and bolster lending to customers.
AP Business Writers Jeff Carlton in Dallas and J.W. Elphinstone in New York contributed to this report.
Financial crisis takes toll on battered housing market; Wall St. ends week with relative calm
WASHINGTON (AP) -- The nation is on track to build fewer homes this year than at any time since the end of World War II, adding to the woes of an economy that analysts said Friday has almost certainly entered a recession.
While the economic outlook darkened even further with bad reports on layoffs and consumer confidence, it was one of the quietest days since the financial meltdown began a month ago. Wall Street's tumultuous week turned out to be its best in five years.
The Dow Jones industrial average lost 127 points Friday but turned in the strong week because of two huge days of gains -- a record 936-point jump on Monday and an increase of 401 points Thursday.
Friday was still marked by the huge swings that have become typical lately. At various points the Dow was up nearly 300 points and down nearly 250, and it finished with a triple-digit move for the 22nd time in 25 trading sessions.
A monthly survey by the National Association of Home Builders showed sentiment among home builders hit a record low in early October.
David Seiders, chief economist for the group, said builders are being hit by a double whammy from the financial turmoil: It's harder for them to get loans to pursue new houses, and more difficult to sell those they do build.
He forecast that builders will keep slashing production in coming months, with construction starts for new homes and apartments totaling just 936,000 this year, the lowest level since 1945.
"The builders are telling us that the financial crisis is really hurting because people justifiably have no idea where things are going," Seiders said.
Before the markets opened, President Bush went to the headquarters of the U.S. Chamber of Commerce to say that the $700 billion financial rescue package was "big enough and bold enough to work."
But he cautioned that it would take time to unlock credit markets.
Adam Levitin, an associate professor at Georgetown University Law School, said that even with the government's injection of billions into the banks, the high debt loads carried by consumers and shortage of creditworthy borrowers could continue to chill lending.
"Who's going to lend to GM right now?" Levitin said at a conference organized by the American Bar Association. He also asked what banks would lend money to homeowners with troubled mortgages.
Analysts said new data released Friday showed it's probably too late for the economy to avoid a recession.
Many of them said they now had recessions in their forecasts, believing that the overall economy, as measured by total domestic production, probably shrank in the July-to-September quarter, dragged lower in part by the continued plunge in housing.
"I don't think there is any ambiguity with respect to whether we are in a recession," said Mark Zandi, chief economist at Moody's Economy.com. "I think it actually started at the end of last year, and because of the financial panic we are going through now, it is likely to last another year."
Other economists said they were looking for at least three consecutive quarters of contraction, reflecting in part the fact that consumers, who account for two-thirds of total economic activity, are showing the strains of the biggest upheaval in the financial sector in 70 years.
A new University of Michigan/Reuters survey showed consumer confidence plunged in early October to its second-lowest level in the past 28 years.
"Concerns about falling employment, incomes and wealth have overshadowed relief from lower energy prices," said Sara Johnson, an economist at Global Insight, a Lexington, Mass., forecasting firm.
The Commerce Department said Friday that construction of new homes and apartments dropped by a bigger-than-expected 6.3 percent in September to an annual rate of 817,000 units, the second weakest performance in government statistics dating back to 1959. The only weaker monthly showing occurred in January 1991, when the U.S. was in a recession and going through a similar painful housing correction.
In a bleak sign of future construction, applications for new building permits fell a sharp 8.2 percent to an annual rate of 786,000 units, the weakest level in more than 25 years.
The government also sharply revised lower its construction data for July and August. That was after dismal news earlier this week that retail sales fell by 1.2 percent in September.
Influential billionaire investor Warren Buffett said in opinion piece in The New York Times that he sees opportunity in the Wall Street chaos. He's been moving his personal investments from safe Treasuries into U.S. stocks.
"To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions," Buffett wrote. "But fears regarding the long-term prosperity of the nation's many sound companies make no sense."
The market eventually will turn around. "So if you wait for the robins, spring will be over," he said.
On the housing front, while the sharp cutbacks in production will help reduce huge inventories of unsold homes, the problem is that rising levels of foreclosures are dumping more homes on the already glutted market.
Zandi said he believed that home prices, which have already fallen by 20 percent, will fall by another 10 percent and will not stabilize until the middle of next year.
Kim Shelpman, the chief executive of Holiday Builders, which operates in Texas, Florida, Alabama and South Carolina, said that her company was competing against a rising tide of foreclosures, but that she believed the excess inventory of homes was being "eaten up at a much quicker pace."
Jesse Barrington, a sale consultant with Sotherby Homes, said the sales slowdown nationwide had been less pronounced in the upscale suburbs of north of Dallas where about 20 homes in a new subdivision had recently sold.
"In a normal economy, this is a good year. In this economy, it's phenomenal," he said.
In the South, sales managed a small 0.5 percent gain in September. They rose by 5.6 percent in the Midwest, where a boost in apartment building offset a slide in single-family homes to a record low.
The weakness last month was led by a 21 percent drop in the Northeast, where construction of single-family units fell to the lowest level on record, and the West, where building slipped by almost 17 percent with single-family construction also hitting a record-low in that region.
On Tuesday, the Treasury Department announced it would inject up to $250 billion in U.S. banks in return for partial ownership stakes, in a program similar to one launched in 1932 by President Herbert Hoover. The government hopes banks will use the capital infusions to rebuild their reserves and bolster lending to customers.
AP Business Writers Jeff Carlton in Dallas and J.W. Elphinstone in New York contributed to this report.
Friday, October 17, 2008
5:23 pm - This is a bearish pattern !
One of the bearish pattern I teach in my futures workshop. It works for daily chart.
9:28 am - FKLI gap up due to DJIA +401 pts.
However, it is easing off. If it break 918 today, this is not good !
Thursday, October 16, 2008
4:10 pm - Short this morning at 911 but finally cut at 912-914
After the gap, the FKLI shud go down but it didn't, so I know the short trade not working !
9:46 am - Another selldown day !
Unfortunately, the volatility is too high to carry overnite ! FKLI is testing weekly S1 at 908.
Wednesday, October 15, 2008
9:04 am - FKLI is set for lower closing today after lower closing by DJIA
LONG trade is stopped out. Think to go short !
Tuesday, October 14, 2008
9:38 am - DJIA has the biggest gain in 30 years history !
We are at the extreme of the market and no one has seen anything like this !
9:24 am - FKLI gap up due to DJIA +935 pts up !
FKLI is facing a resistance at 985/984. If it can break this resistance, we wud see higher FKLI.
Monday, October 13, 2008
4:51 pm - Market Outlook by Bill Wermine
Dear Traders & Investors,
The market consensus is overwealmingly bearish. Read the newspapers and see the doom and gloom, panic and fear. Emotions rather than logic are dominating the mood. The Economist magazine showed an investor swinmming on the top of the ocean and a giant shark waiting to eat him up. Is it so bad ? Is the market saying something about itself while the experts are preaching that the end of the world is near ? Remember bad news is good news for the media.
Martin and I held an investment talk Sunday to a crowd of over 60 investors. We asked the usual question. How many are bullish ? No one raised their hand. How many are bearish ? Almost everyone responded.
Looking at the KLSE chart tells a different story. Major monthly support is being tested and it is holding. Valuations are at 1997 panic levels so there is very small risk at this point. KLSE is up 15 points today. Accumulate quality issues at this level.
We are holding a market talk next Saturday at CIMB Auditorium to share the curent market outlook/ opportunities and why we are in this financial mess. Details/map are below with map attached.
The market consensus is overwealmingly bearish. Read the newspapers and see the doom and gloom, panic and fear. Emotions rather than logic are dominating the mood. The Economist magazine showed an investor swinmming on the top of the ocean and a giant shark waiting to eat him up. Is it so bad ? Is the market saying something about itself while the experts are preaching that the end of the world is near ? Remember bad news is good news for the media.
Martin and I held an investment talk Sunday to a crowd of over 60 investors. We asked the usual question. How many are bullish ? No one raised their hand. How many are bearish ? Almost everyone responded.
Looking at the KLSE chart tells a different story. Major monthly support is being tested and it is holding. Valuations are at 1997 panic levels so there is very small risk at this point. KLSE is up 15 points today. Accumulate quality issues at this level.
We are holding a market talk next Saturday at CIMB Auditorium to share the curent market outlook/ opportunities and why we are in this financial mess. Details/map are below with map attached.
Bill & Myself are presenting a talk on trading opportunities in the Bursa Malaysia & Global Outlook on Sat 18 Oct, 2008. The talk is free. You are welcomed to bring friends along. Seats are limited. See attachment to register.
Rgds, -Martin Wong/ Bill
Rgds, -Martin Wong/ Bill
9:25 am - DJIA has a long doji tail and with high volume.
A significant turn of event for DJIA. With G7 Countries meeting to discuss next course of action for the financial crisis. DJIA may reverse soon.
9:11 am - FKLI gap up due to higher DJIA futures this morning.
DJIA futures is up +250 pts. The question is can our cash mkt move higher !
Friday, October 10, 2008
10:10 am - Trading short is difficult as there is bullish divergence !
However, any higher movement of FKLI will be meet by selling. Sellers are strong now !
9:32 am - DJIA has fallen almost -7.3 percent.
There is hidden potential buying ahead. Notice the higher volume but less than right side. Expect a rebound soon !
Thursday, October 09, 2008
8:55 am - FKLI has gapped to trapped those short sellers who shorted but not cut yet !
FKLI gap up anticipating there is limit to FKLI downside. It is likely to move sideway or down. If it break 970, it does not look good for long position.
Wednesday, October 08, 2008
11:10 am - Unexpected huge downbar for DJIA considering US FOMC is co-ordinating worldwide interest rate cut.
More downside expected with no support to DJIA is short term.
11:03 am - There is a support at 973/970
Gone short and FKLI is testing 973/974 for the 3rd time. If it is going to break, it may break today !
Tuesday, October 07, 2008
5:15 pm - FKLI closed with uncertainty !
At this point, I do not really know where is FKLI is heading to ? It looks like sideway to downward.
4:30 pm - DJIA futures fell into negative terrority !
Cut our long position but staying out for the time being.
12:25 pm - DJIA looking for a reversal. Notice the tail and it has a good support here !
However, volume is not convincing.
12:08 noon - US FOMC may look to cut interest rate after Australia cut by 1 percent.
FKLI looking very bullish as DJIA futures up +121
9:03 am - FKLI did not gap down much ! No selling yet !
After all, FKLI has sold down a lot. Think to take profit or go LONG now !
Monday, October 06, 2008
5:19 pm - FKLI is going to test 960/962 year low !
Still holding our short position for carry overnite !
9:20 am - Market Outlook by Bill Wermine
Dear Traders,
The US economy is facing a crisis that is conjuring up images of the calamities of the great depression of the 1930s. European and Asian stock markets are tumbling as terror and panic hits Wall St. When US lawmakers passed the 800 billion bailout bill on Friday the Dow reversed a 313 point gain to a 157 point loss.
In the last month the Dow has lost 12 % or 1.8 trillion USD.
The threats to the global economy are real and daunting. The collapse of Wall St's mighty financial institutions will have far reaching ramifications on every country in the synchronized global economy. The American economy is in deep trouble and the prospects for a quick recovery are dim. The so called meltdown is already happening and will take months before the full extent of the damage ignited by the sub prime mortage market is fully recovered.
Our AUD Man investments are safe. Our money is in segregated accounts administered by an independent trustee and regulated by the MAS, (monitary authority of Singapore.) Your Global Wrap account in Singapore is also solid as it operates under the same mandate. Phillip is a very conservative, prudently managed operation and has no exposure or high leverage to structured products such as Lehman/ Merril Lynch, Bear Sterns and many other financial institutions.
Man hedge funds also are conservatively managed and have low leverage. Man losses are minimal although many highly leveraged hedge funds have gone bust
Below is a letter to one of my clients who was concerned. For the August investors you should You should get a 4 % rebate of sales charges next week to be credited to your account. Losses in our funds are mainly because of the AUS dollar decline vs the RM . My chart shows heavy accumulation of the AUD at current levels by insiders. When the AUD recovers we should benefit.
Short selling bans does not affect us- Man short sells stock indexes/commodities in the futures markets but does not deal in individual shares. If the authorities close the commodity/ futures markets that would affect us. At this point there is no evidence they will do so.
The Man funds has weathered the worst of the current financial collapse and remember we have a capital guarantee unlike unit trust funds. I have confidence Man will again achieve new equity highs.
Next Sunday 12 October we are holding 2 presentations at the Best Western Seri Pacific Hotel (Formerly Pan Pacific Hotel) from 2 PM to 3 45 PM and 4 15 to 6 PM.
Title of the Presentation Is this the 1997/1998 collapse again and what can we do to protect ourselves?
We will discuss the world market outlook, futures trading opportunities in CPO and CI. We will also preview our next foundation course.
If interested to attend, please call Chong 03 2095 3991/ 016 662 0881. We are speaking Mandaran as well as English in this presentation
Maintain your cool in the face of turmoil and panic. Warren Buffet has been buying GE, Goldman Sachs as well as other quality blue chip shares. He is still maintaining his investment portfolios. Professionals are buying in the current environment.
Have a good week
Bill
The US economy is facing a crisis that is conjuring up images of the calamities of the great depression of the 1930s. European and Asian stock markets are tumbling as terror and panic hits Wall St. When US lawmakers passed the 800 billion bailout bill on Friday the Dow reversed a 313 point gain to a 157 point loss.
In the last month the Dow has lost 12 % or 1.8 trillion USD.
The threats to the global economy are real and daunting. The collapse of Wall St's mighty financial institutions will have far reaching ramifications on every country in the synchronized global economy. The American economy is in deep trouble and the prospects for a quick recovery are dim. The so called meltdown is already happening and will take months before the full extent of the damage ignited by the sub prime mortage market is fully recovered.
Our AUD Man investments are safe. Our money is in segregated accounts administered by an independent trustee and regulated by the MAS, (monitary authority of Singapore.) Your Global Wrap account in Singapore is also solid as it operates under the same mandate. Phillip is a very conservative, prudently managed operation and has no exposure or high leverage to structured products such as Lehman/ Merril Lynch, Bear Sterns and many other financial institutions.
Man hedge funds also are conservatively managed and have low leverage. Man losses are minimal although many highly leveraged hedge funds have gone bust
Below is a letter to one of my clients who was concerned. For the August investors you should You should get a 4 % rebate of sales charges next week to be credited to your account. Losses in our funds are mainly because of the AUS dollar decline vs the RM . My chart shows heavy accumulation of the AUD at current levels by insiders. When the AUD recovers we should benefit.
Short selling bans does not affect us- Man short sells stock indexes/commodities in the futures markets but does not deal in individual shares. If the authorities close the commodity/ futures markets that would affect us. At this point there is no evidence they will do so.
The Man funds has weathered the worst of the current financial collapse and remember we have a capital guarantee unlike unit trust funds. I have confidence Man will again achieve new equity highs.
Next Sunday 12 October we are holding 2 presentations at the Best Western Seri Pacific Hotel (Formerly Pan Pacific Hotel) from 2 PM to 3 45 PM and 4 15 to 6 PM.
Title of the Presentation Is this the 1997/1998 collapse again and what can we do to protect ourselves?
We will discuss the world market outlook, futures trading opportunities in CPO and CI. We will also preview our next foundation course.
If interested to attend, please call Chong 03 2095 3991/ 016 662 0881. We are speaking Mandaran as well as English in this presentation
Maintain your cool in the face of turmoil and panic. Warren Buffet has been buying GE, Goldman Sachs as well as other quality blue chip shares. He is still maintaining his investment portfolios. Professionals are buying in the current environment.
Have a good week
Bill
9:02 am - Looking at 4 hrs chart of FKLI
FKLI may congested at 1000. There is a strong resistance & support. Breaking 980 shud initiate a short trade here !
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