Tuesday, January 21, 2014

Strategy for 2014 Investing

KLCI Index has started the year with a few days going down. To me this is not a good sign as people taking profit this year. As explain by most analysts, the upside for KLCI this year is pretty limited, thus I'm expecting a negative return even for KLCI.

The only "cheap" counters I can still think of is YTL currently. With the privatisation of YTLCements etc, it is worth much more. But other than KLCI index stocks, some sector I think might worth our consideration.

1. Logistic companies-with the coming recovery of US economy, and also soft landing in Asia economics, I hope logistic companies can have some growth there. Baltic Dry Index recover from all time low now, maybe can have some logistic companies holding. Currently I'm watching ILB only.

2. Log & Timber sectors-with weakening MYR moving forward, exports will be a beneficial sectors. Also, if Abenomic is successful, and confident level of Japanese companies, individuals recover, people who are more willing to spend their money instead of getting less than 1% in bank accounts, the future of timber stocks in Malaysia can be bright. Currently I'm watching only WTK for this sector.

3. Industrial sector which focus on exports-with weakening MYR also, some huge manufacturers might be moving back to Malaysia even compared to strong Yuan moving forward. We have seen many chocolate manufacturer moving into Malaysia recently, there might be good reasons for them to do it here. Thus I think industrial where they focus mainly on export can have a good year.

Never the less, still monitoring on a few stocks, hopefully I can achieve target of 20% this year.

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