An extract of Dr Chan’s interview on Channel 8!
The stage is set and the world will be watching. In the upcoming summit between Kim Jong Un and US President Trump, investors will monitoring to see if the momentum towards denuclearisation on the Korean Peninsula would continue.
In a symbolic move, North Korean Leader Kim Jong Un took his first step on South Korean soil in April, during a summit with his South Korean counterpart Moon Jae-in where Kim pledged to work towards greater stability for the two Koreas, much to the overtures of the investment community,
Over in the US, investors are expecting President Trump to dish some sort of deal to North Korea, as possible thawing of North and South Korean tensions would greatly boost his standing before the US upcoming midterm elections.
Already, Trump has accomplished cutting taxes in America – a major legislative success – to fulfill one of his most prominent campaign promises. Currently, Trump is slated to meet with Kim and the world will be expecting some sort of deal to be reached. If Trump succeeds, it would be yet another “achievement” to add to his belt.
Whilst trade negotiations between US and China have begun, investors should not be too optimistic about the initial negotiations. In the first round of talks, both parties had only put forth their demands with no deals being struck. That said, as long as both parties are open to negotiations, some compromise and concessions will eventually be reached since neither US nor China will stand to gain from a full-scale trade war. In any case, opening up China’s economy was all along a part of the Chinese government’s plan and Trump is merely pushing for it.
On the local stock market, I am still rather optimistic that about its near-term outlook, given the rather healthy earnings performance reported thus far. On a side note, in addition to trade concerns, investors should expect higher market volatility given that there will be some profit-taking and bargain-hunting activities going on during the result season.
During such periods, there are two ways to manage your investments: You can try trading the range by buying when stock prices fall and selling when stock prices rise. Another way is to just leave your investments alone and ride the long-term uptrend!
Coming July 2018, Dr Chan will be giving classes at Shares Investment Educentre. His curriculum will include: Signs Of A Turning Market, Understanding Risk-to-Reward, Investment vs Speculation, Managing Your Investment EQ and many more! Wait no further and pick the best brains and invest like a PRO!
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