Thursday, September 22, 2022

[APPLE PROJECT] SECOND TRANCE OF INVESTMENT

On 22.09.2022 the US Federal Reserve announced another raised in interest rates by three-quarters of a percentage point for the third consecutive time. This may represent another pressure on Ringgit against the US Dollar. It also means that I have to pay more (of Ringgit) for the second trance of USD600.00.


Apart from that, the probability of a recession is high, especially in the Europe which is facing high price of energy. 

I strongly believe the currencies (US Dollar and Ringgit) would normalize in the long term because rates would cool off from its peak, but the thing is that this normalization might take few months or even longer than that. My point here is that if I wait for the "normalization" to take effect, I may miss out the price rally of a great company like APPLE.

Notwithstanding of the above, I am of the view that APPLE has a strong economic moat from its strong royal fans which are willing to spend on its subscription services. This can be seen from its increased in subscription numbers which drove double digit growth in service revenue. 

So, this is what I am going to do. I intend to slow down the progress of my injection of the second trance of USD600.00 (investment in APPLE). My estimation of the timing would be in the next 4 to 6 weeks. 

Rest assure that I will update again.

#AppleProject

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