Focus on Asia in 2024: Where to put your money? January 31, 2024
This year, should you invest your money in China, India or Singapore? Which products should you go for? Confused…. Don’t be… Read this article, attend the webinar… and you could have the answers you are looking for.
Now that the Fed rate hikes are likely over, and rate cuts are on the way, the hard part for markets could be over. After the challenges in 2023, Asia is especially poised to do well as it is deemed an untapped reservoir in the global financial landscape.
So, what are the things you need to look at before you invest your money in Asia?
For starters, you need to keep an eye on Monetary policy and its potential impact on various markets.
Also, you need to understand the challenges in 2023 and how they were will be addressed.
p>Among the other issues, you need to look at are the factors contributing to Asia’s potential outperformance, and how these factors may shape market dynamics.
Going further, investors should search for overlooked or undervalued opportunities, and maybe insights into specific sectors within Asian markets that are poised for growth and may present unique investment opportunities.
China, India may hold the key
Despite the challenges in China, the longer-term trend around consumer upgrading remains intact and the best companies can benefit from sector consolidation.
India, with its unique characteristics, also continues to offer opportunities for investors and can improve diversification in portfolios.
So, despite the uncertainties, potential growth areas in Asia exist for high-quality companies and market leaders with robust balance sheets. Whatever happens, the best companies tend to prosper in easier times or suffer the least when times are tough.
So, how should investors, invest their money in these markets? Before investing, investors must try and understand China’s challenges and how they could impact investments, and the strategies for navigating such uncertainties.
Investors must also look at the consumer upgrading trend to see how they can capitalise on opportunities arising from this.
As for India, investors should look for specific opportunities and understand why India is attractive for investment.
In short, to invest in China and India, investors must understand which specific sectors or industries within the Asian market are considered promising, along with the criteria for identifying high-quality companies.
SGD bond yields are currently at their most appealing level in over a decade. Backed by stable credit fundamentals, tight bond supply, and strong demand, the SGD bond market has a supportive technical backdrop.
Investors stand to benefit from potential capital appreciation when the global interest rate easing cycle kicks in. So, this is an opportune time to revisit the fixed-income market and consider SGD government bonds and investment-grade corporate bonds.
But, before you venture into this territory, you must understand why SGD bonds have attractive yield levels, how their prices are affected by global interest rate trends, and the potential for capital gains in a changing interest rate environment.
For this, you need to get an insight into SGD government bonds and investment-grade corporate bonds, and their risk-return profiles, and see if it makes sense for you to incorporate them into your investment portfolio.
To learn more, attend the webinar on 3 Feb. The details are given below:
About the author
Elston Soares is an editor with the Phillip Securities Research team.