The year of the rat was greeted with the onset of an extreme infectious disease. Although the means of transmission are dissimilar to the bubonic plague / Black death of the 14th century, the fear and rumour mongering on social media in China and SG is perhaps equally contagious.
Seeing red during CNY on the stock market is not exactly an enjoyable experience although I was emotionally prepared for it. I am happy to have stockpiled my war chest to prepare for market corrections like this. Although I do not exactly rejoice on the fact that people are dying and suffering from possible loss of their loved ones, my job as a contrarian investor is to seek out undervalued opportunities in averse market sentiment.
Short term impact
Raffles medical - solving of overcapacity issue on Chongqing and Shanghai.
IHH Healthcare, which has eight ParkwayMedical health centres in China
Medtecs, a manufacturer and distributor of medical consumables,
Alcohol wipes - WIP
Face mask - 3M possible candidate. Healthcare and face masks is not major contributor of revenue though.
Gloves (cyclical industry)(already seen noticeable price appreciation)
Top glove - Balance sheet risk
Prolonged outbreak (6 months and more)
Fu Shou Yuan
HK and China index funds
General low cost Global ETFs