Extraordinary Profits In Times of Trouble!

I looked at some of the stocks that I follow on my radar screen. The pre-market trading looks calm and fully factored in after the 25bps hike. As expected. J

Look out for companies going through share buybacks. They have a strong chance of doing well. Miyoshi, CSE Global, China Sunsine etc are a few names. But CSE Global is the one that is really trending up and paying a nice dividend yield!

I spoke to a few astute investors. Almost all of them make their wealth when they buy during times where no one dared venture. E.g. I met a new friend called Chris. He lived in Japan for a few years. Bought a block of flats just behind Tsukiji Fish Market, demolished and built six storeys. Guess when he bought the small block? Back in 2012, just after the Tsunami hit…. J today it almost doubled. The cap rate was 7% then and now 4%.

If you had bought single family homes in in the US coastal areas between 2009 and 2013, you would have made a good 30 – 50% now. I was in Manhattan shopping for apartments by Central Park with my friend right after hurricane Sandy where cars were floating in the basement carparks. They were going for around USD1800 psf Upper East Side. Today I believe they are around 2500 – 3k psf. Also was in Dublin in 2012 right after the EURO crisis. The banks who foreclosed the properties were literally on their knees asking us to purchase the finished apartments as the developers have defaulted.

Look at some of the bombed out markets, RSX or Russia is stabilizing. Turkey is extremely cheap today. These countries are always in the limelight for the wrong reasons! Closer to home is Hong Kong shares which have fallen by over 30%!

Oh yes, the next crisis to hit is Brexit in March 2019. There’s a lot of fear of a no-deal or lousy deal. You can start venturing into these disastrous areas to pick bargains soon!  I urge you to always go contrarian. To be there when most people fear, or when the news is mostly negative. That’s when you make the most.






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