Connect with us

Business

Finance: Market pullbacks make great opportunities

Legacy Phuket Gazette

Published

on

Finance: Market pullbacks make great opportunities | The Thaiger

PHUKET: Pullbacks are great opportunities to see where the strongest stocks are, allowing investors to make a watch list of potential leadership stocks or sector ETFs that are holding up in the face of bad news.

Since early March, we have been seeing the S&P 500 undergo some consolidation involving a pullback. A 2-8 per cent pullback is perfectly healthy and normal, with anything higher being more unusual, but nothing to panic about.

This time around, we saw financial stocks getting hit the most. This brings us to about 30-35 per cent cash for clients’ long-term growth accounts.

Despite the increasingly scary news (such as North Koreans with nukes), we are still seeing individual leadership stocks staying strong, while weaker stocks are leading the pullback. For instance, the tech laden NASDAQ-100 index has barely budged downward since March and many of our core portfolio holdings, such as Apple, Netflix and Priceline Group, have continued to perform well.

Small cap biotech Theravance Biopharma is showing strength as shares have closed above their IPO level for retail investors and hit all-time highs. It also moved up 20 per cent during the March-April pullback as the ‘smart money’ continues to look for and invest in strong stocks.

Large cap Celgene Corporation has been bucking the S&P 500 downtrend by moving strongly in the opposite direction.

Mid cap life-sciences cloud-computing stock Veeva Systems has not even budged downward during the pullback. Not only has it closed back above its IPO level, but its shares keep hitting all-time highs.

China-based online behemoth Alibaba Group Holding is going strong. The stock is just waiting for some sort of catalyst (perhaps the next earnings report) to break even higher.

Large cap T-Mobile US is one that I am looking to buy as shares are holding up well throughout the pullback.

The iShares MSCI South Korea Index Fund ETF is also holding up surprisingly well in the face of North Korean nuclear threats. Now would be a good time for any investor with a strong stomach for geopolitical risk to consider buying it.

What I am waiting for is confirmation that the S&P 500 pullback will reverse itself, as what we saw before the US elections was a 2-3 month pullback and a breakout once the uncertainty was over.

On the other hand, if early March was in fact some sort of market top, our stocks will likely be stopped out one by one and fall below stop loss levels to be automatically sold.

If the market is unable to find support in the near term, then we will likely raise more cash, as I always ensure there are proactive stop loss levels in place where stocks will be sold if a key support level on the downside is breached.

Watch the shares of Google and Amazon; their quarterly earning reports show they are moving to new highs. The week after the French elections saw the 8-week correction ending and the uptrend continuing higher.

Don Freeman, the president of Freeman Capital Management, is a fee-only Phuket based Registered Investment Adviser with the US Securities Exchange Commission. He has 20 years of experience providing financial planning and wealth management advice with an emphasis on investing in low-cost ETFs to both working and retired expatriates.

— Don Freeman



Do you need help with your business? Are you searching for a new job? Or an employer looking to hire? Try JobCute today.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Thailand Post’s no-go list

The Thaiger

Published

on

Thailand Post’s no-go list | The Thaiger

Twenty years ago postal services were thought to he going out of fashion as email and social media began to replace people sending letters in the post. But that’s all changed now as online retail services are making the world’s postal services busier than ever. Including Thailand Post.

If you’re wishing to avoid problems with Thailand Post and would like to know what you should’t be putting in the mail, this story is for you. At the top of Thailand Post’s warnings, senders are advised not to lend their ID cards (or passports) to strangers to mail their packages.

Thailand Post have issued the guidelines after police found that drug traffickers are increasingly resorting to postal services to send narcotics to their customers, after several major drug shipments, being transported in vehicles, were intercepted by police.

The managing director of state-run Thailand Post, Samorn Therdthampiboon, says the company’s post offices have intensified the screening of parcels to prevent unscrupulous senders from mailing prohibited items.

Senders are required to show their ID cards (or passports), and CCTV systems have been installed in all post offices. There are also X-ray scanners to look for explosives and flammable materials as part of the increased security measures.

There are seven types of items prohibited from being sent by mail…

  • Live animals
  • Narcotics (illegal drugs)
  • Pornographic material
  • Explosives or flammable substances
  • Unsheathed knives or other sharp objects
  • Banknotes
  • Fake products which infringe intellectual property rights

(We would add Durian but that’s still legal!)

SOURCE: Thai PBS

Continue Reading

Business

Unregistered hotels and lodgings told to get their paperwork in order, or close down

The Thaiger

Published

on

Unregistered hotels and lodgings told to get their paperwork in order, or close down | The Thaiger

At least 5,000 of the country’s estimated 23,000 unregistered small hotels are expected to get their paperwork in order. The rush to action follows the announcement by the current government to register and comply with the Hotel Act, or be closed down.

Most of Thailand’s busy tourist spots are rampant with small and illegal lodgings for tourists. Whilst the growth of registered hotels has rushed to keep pace with the rising tourist numbers, so too has been the rise of unlicensed properties in Thailand’s hot tourist spots.

The order was made through the controversial Article 44 powers which doesn’t provide for debate or parliamentary endorsement. When announced last week the Thai PM said the order was aimed at bringing illegal hotels and accommodation service providers under better control and boost safety and reliability for guests.

The order will require smaller, unregistered accommodations to comply with the same regulations as properly registered hotels – building regulations, room sizes, the amount of fire extinguishers required, fire escapes, standards of accommodation, accounting standards, etc. The government says there will be a period given – up to 90 days – for properties to operate whilst they get their compliance and standards up to date.

Authorities are also reportedly planning amendments of the Hotel Act to bring room-sharing platforms like Airbnb under a legislative framework. Currently the act allows accommodation offerings with less than four rooms to operate without a hotel licence.

A law-firm has, in English, gone through the steps needed for unregistered accommodation to comply with the Hotel Act….

How to obtain a hotel license in due course

A hotel is defined under the Hotel Act 2004 as any business providing paid accommodation for less than a month, irrespectively of the number or capacity of the rooms. Even the smallest villa and a one-bedroom condominium unit can qualify as a hotel under the law. However, the Hotel Act legitimises ministerial regulations to regulate this otherwise.

To successfully apply for a hotel business application, in general, these seven steps are required:

Step 1: Is the business exempted under the 4-20 privilege? An application is only needed if (i) the business qualifies as a hotel and (ii) such hotel is not license-free. Under the Ministerial Regulation 2008, a hotel license is not required if the business

  • has not more than four rooms on all floors in all buildings,
  • has a total service capacity of no more than twenty guests,
  • qualifies as a small business which provides an additional source of income for the owner, and
  • reports its daily rental business to the government (hotel registrar).

If the business is in-line with these requirements, it is unclear whether it does not qualify as a hotel (“no hotel”) or whether it is a license-free hotel business (“type-zero hotel”). The latest court decisions seem to favor the latter interpretation.

  • Type 0: hotels which are exempted from certain requirements including the need to obtain a hotel business license,
  • Type 1: hotels providing accommodation only, the number of rooms does not exceed fifty, the size of each room is not less than eight square meters,
  • Type 2: hotels providing accommodation and catering or restaurant services, the size of each room is not less than eight square meters,
  • Type 3: hotels giving accommodation, catering or restaurant services, the size of each room is not less than 14 square meters, and which has either conference rooms or entertainment venues which under the Place of Service Act could be a place for dancing, bars, and nightclubs or spa,
  • Type 4: hotels providing accommodation, catering or restaurant services, conference rooms, and entertainment venues, the size of each room is not less than 14 square meters.

For Type 3 and 4 hotels, no entertainment venues will be allowed unless these hotels have more than 80 rooms, are located in entertainment areas, or serve food, alcohol or entertainment only, and have opening hours after midnight.

You can read a full explanation about compliance with the Thai Hotel Act HERE.

Continue Reading

Business

Thailand’s exports plunge 5.8% in May

The Thaiger

Published

on

Thailand’s exports plunge 5.8% in May | The Thaiger

Thai exports have declined 5.8% for the month of May 2019. The value of May’s exports is 648 billion baht.

The Commerce Ministry says in their report today that the contraction is mostly influenced by global factors including ongoing trade tensions between US and China and tighter global financial conditions, and specific factors of each country and region, political uncertainty in the EU and the unresolved Brexit in the UK.

“However, the effects on Thai exports are relatively less than those on other Asian countries” say the Commerce Ministry.

Thai exports still performed sturdily in main markets namely US and India and expanded in rising markets such as Canada, Russia and CIS (the post Soviet states).

Continue Reading

The Thaiger Newsletter

Keep up with all the day’s news. Subscribe here.

The latest news and information from Thailand.

* indicates required
เลว! วินจยย.อุดมสุขยกพวกตีกัน ไม่กลัวตร. หนุ่มโดนลูกหลงกระสุนเจาะศีรษะดับหน้าบ้าน [คลิป] | The Thaiger
ข่าวกรุงเทพ2 weeks ago

เลว! วินจยย.อุดมสุขยกพวกตีกัน ไม่กลัวตร. หนุ่มโดนลูกหลงกระสุนเจาะศีรษะดับหน้าบ้าน [คลิป]

ชมไฮไลต์การแข่งขันไทย-สหรัฐ “ฟุตบอลโลกหญิง 2019” กลุ่ม F | The Thaiger
ฟุตบอล2 weeks ago

ชมไฮไลต์การแข่งขันไทย-สหรัฐ “ฟุตบอลโลกหญิง 2019” กลุ่ม F

10 มิ.ย. ถ่ายทอดสด “ฟุตบอลโลกหญิง 2019” ไทยพบสหรัฐ ตี 2 -PPTVHD ยิงตรงจากสนาม | The Thaiger
ฟุตบอล2 weeks ago

10 มิ.ย. ถ่ายทอดสด “ฟุตบอลโลกหญิง 2019” ไทยพบสหรัฐ ตี 2 -PPTVHD ยิงตรงจากสนาม

เริ่มแล้ว งาน”1 ปี อนาคตใหม่ เดินไปด้วยกัน” ณ หอประชุมใหญ่ ธรรมศาสตร์ท่าพระจันทร์ | The Thaiger
ข่าวการเมือง3 weeks ago

เริ่มแล้ว งาน”1 ปี อนาคตใหม่ เดินไปด้วยกัน” ณ หอประชุมใหญ่ ธรรมศาสตร์ท่าพระจันทร์

ดูย้อนหลังวอลเลย์บอลไทย-ตุรกี “เนชั่นส์ ลีก 2019” นัดที่ 9 | The Thaiger
วอลเลย์บอล3 weeks ago

ดูย้อนหลังวอลเลย์บอลไทย-ตุรกี “เนชั่นส์ ลีก 2019” นัดที่ 9

ระเบิดความมันส์ 6 มิ.ย. ไทย-ตุรกี “วอลเลย์บอล เนชั่นส์ ลีก 2019” -ลิงก์ถ่ายทอดสด | The Thaiger
วอลเลย์บอล3 weeks ago

ระเบิดความมันส์ 6 มิ.ย. ไทย-ตุรกี “วอลเลย์บอล เนชั่นส์ ลีก 2019” -ลิงก์ถ่ายทอดสด

ดูย้อนหลังแมทช์ 5 ดาว วอลเลย์บอลไทย-โดมินิกัน “เนชั่นส์ ลีก 2019” นัดที่ 8 | The Thaiger
วอลเลย์บอล3 weeks ago

ดูย้อนหลังแมทช์ 5 ดาว วอลเลย์บอลไทย-โดมินิกัน “เนชั่นส์ ลีก 2019” นัดที่ 8

5 มิ.ย. ชมถ่ายทอดสดประชุมสภาผู้แทนราษฎรครั้งที่3 โหวตเลือกนายกรัฐมนตรี | The Thaiger
เลือกตั้ง 623 weeks ago

5 มิ.ย. ชมถ่ายทอดสดประชุมสภาผู้แทนราษฎรครั้งที่3 โหวตเลือกนายกรัฐมนตรี

[LIVE] “ธนาธร จึงรุ่งเรืองกิจ” แสดงวิสัยทัศน์บริหารประเทศนอกรัฐสภา : เลือกตั้งนายก 2562 | The Thaiger
เลือกตั้ง 623 weeks ago

[LIVE] “ธนาธร จึงรุ่งเรืองกิจ” แสดงวิสัยทัศน์บริหารประเทศนอกรัฐสภา : เลือกตั้งนายก 2562

11 โมง ชมถ่ายทอดสดประชุมรัฐสภา โหวตเลือกนายกรัฐมนตรี คนที่ 30 | The Thaiger
เลือกตั้ง 623 weeks ago

11 โมง ชมถ่ายทอดสดประชุมรัฐสภา โหวตเลือกนายกรัฐมนตรี คนที่ 30

เชียร์สด 4 มิ.ย. ไทย-บัลแกเรีย “วอลเลย์บอล เนชั่นส์ ลีก” 6 โมงเย็น-ลิงก์ถ่ายทอดสด | The Thaiger
วอลเลย์บอล3 weeks ago

เชียร์สด 4 มิ.ย. ไทย-บัลแกเรีย “วอลเลย์บอล เนชั่นส์ ลีก” 6 โมงเย็น-ลิงก์ถ่ายทอดสด

เพราะมาก “แก้ม วิชญาณี” เจ้าหญิงจัสมิน โคฟเพลง “Speechless” | The Thaiger
เพลงสากล3 weeks ago

เพราะมาก “แก้ม วิชญาณี” เจ้าหญิงจัสมิน โคฟเพลง “Speechless”

[คลิป]ชาวเน็ตโวย UNHCR ตั้ง”นก สินจัย” พรีเซนต์ช่วยผู้ลี้ภัย “ปวิน” คอมเมนต์เจ็บ | The Thaiger
ข่าวการเมือง3 weeks ago

[คลิป]ชาวเน็ตโวย UNHCR ตั้ง”นก สินจัย” พรีเซนต์ช่วยผู้ลี้ภัย “ปวิน” คอมเมนต์เจ็บ

[Live]ชมสด 21:30 ขบวนแห่ลิเวอร์พูล ถ้วยยูฟ่า แชมเปียนส์ ลีก 2019 | The Thaiger
ฟุตบอล3 weeks ago

[Live]ชมสด 21:30 ขบวนแห่ลิเวอร์พูล ถ้วยยูฟ่า แชมเปียนส์ ลีก 2019

ชมย้อนหลัง ลิเวอร์พูลชัยชนะเหนือสเปอร์ส คว้าแชมป์ยูฟ่าสมัยที่ 6 | The Thaiger
ฟุตบอล3 weeks ago

ชมย้อนหลัง ลิเวอร์พูลชัยชนะเหนือสเปอร์ส คว้าแชมป์ยูฟ่าสมัยที่ 6

Trending