THE SHRINKING WORLD OF LIQUIDITY & ASSETS DEFLATION WORLDWIDE, Calvin Tan Research

Dear Friends of i3 Forum,

After The Rise of Donald Trump the US has raised trade barriers, immigration barriers & the strength of the US Dollar as a “safe” haven.

It was QE1, QE2 & QE3 that pumped cheap money into the World system. As a result of these Almost “Free Printed Monies” Funds from USA has gone round the earth inflating all Assets including Shares, Bonds, Real Estates, Gold, Collectibles & art pieces.

Now that FED is calling off QE and raising Interest rates there is a mass withdrawal of liquidity back to the USA – thus causing a worldwide deflation of assets including shares,bonds and real estate prices of practically all countries without exception.

Here in Malaysia the PH Govt is facing Cash constrain due to the perceived Rm1 Trillion Debt. Construction of ECER, HSR have been cancelled or postponed. Contracts awarded are called back or scale down – leading to very weak share prices for construction companies & construction material companies are even hit harder



Like a Dry Desert Land The POOL OF LIQUIDITY IS SHRINKING ^ SHRINKING DAILY LEADING TO LOWER AND LOWER SHARE PRICES FOR MANY COUNTERS

THE HARDEST HIT WILL BE THOSE THAT OVER EXPANDED, OVER BORROWED & OVER LEVERAGED – ESPECIALLY BY MARGINS

AND THE SAFEST ARE THOSE COMPANIES THAT HAVE HIGH CASH OR HIGH NET ASSET HOLDINGS THAT ARE LIQUID

BETTER STILL IF THEY GIVE OUT GOOD DIVIDENDS!

See the Example of An Oasis in A Desert



And see the lack of liquid (liquidity)



SO AVOID BUYING INTO OVER LEVERAGED AND OVER EXTENDED COMPANIES WHICH MIGHT FACE CALL CALL BY RIGHTS ISSUE ASKING FOR MONIES
BANK LOANS WILL BE MORE STRINGENT AND HARDER TO GET

BEST IS TO BUY INTO CASH RICH COMPANIES LIKE EKSONS, TA ENTERPRIZE, CSC STEEL, ECS ICT OR DUTALAND

WARM REGARDS
Calvin Tan
Jurong, Singapore

https://eaglevisioninvest.com/the-shrinking-world-of-liquidity-assets-deflation-worldwide-calvin-tan-research/