In the past 2 years, while starting each of the new year, we can see strong headwinds coming from the horizon, such as Grexit event, jittering the fear of European Union break up, fear of China economic hard landing, rumors and the actual ending of US QE which sounded like the Apocalyptic for the global financial markets. All these past events have caused great panic to global investors resulted messy selling.
Within these period, US markets have been generally side way without any significant progress or gain. Investing in stocks or mutual funds during this period of time has not been easily rewarding.
However, the moment after the US presidential election on November 9th, 2016, the entire landscape of US markets, and the whole world have turned around. It has been on its bullish course due to the expectation of what President Trump has promised during his election campaign.
Bullish Market Opportunity Presented in 2017
With the first few weeks in office, we have come to term with what Trump administration would most probably be like. His protectionist policy would most probably face some uneasy challenges. This is good for investors like us. We could now know that the most active economic activities still belong to the emerging markets or Asia Pacific region. This is where we can focus to place our investment. This view is also the advocated by Geoff Lewis, Senior Asia Strategist for Manulife Asset Management. (Please read detail in article “Markets are off to a good start”)
As US economy and financial market are generally bullish, the world in general follows bullishness. Bullish market is the best opportunity to invest. It is like whatever we touch seems blossom. It is a matter of which one grows the most and we hope to have identify that fast rising star and take full advantage on its ride along the way.
In terms of region we can select to focus on our investment, it would be non other than emerging markets where upside potential poises higher possible return than those developed regions like US, Japan or European countries. Whereas for single country selection, China, India, and Indonesia might be good choices to consider.
Single Country to Consider
China has been negatively predicted to have economic hard landing in the past, but it did not materialize. It has rather touched bottom by January 2016. It has since been rising steadily from there ever after. Data released recently has almost all been pointing to optimistic economical development for the Chinese future.
Currently, China has even surprised US as number one world largest economy in certain aspects. Investopedia asserts, “the U.S. economy loses its spot as the number one economy to China when measured in terms of GDP based on PPP. In these terms, China’s GDP is $21.3 trillion and the U.S. GDP is $18.5 trillion.” It shows the changing landscape of world economy and Chinese upper potential for future development
India is another country that has a large upper room to grow as a developing nation due to its large consumption base. The current Prime Minister Modi has done a tremendous economical transforming effort since he came into power 2014. Good future projection have been predicted for India in the world economic. Investopedia has predicted India, currently the 7th World’s largest economy, to replace Japan as the third largest economy in the world by 2020.
Indonesia is also another country undergoing economic transformation through the change of new political leadership under Joko Widodo since 2014. The economical improvement of the nation is very well recognized. CNBC Business said, “Southeast Asia’s most populous nation is on track to become the world’s 7th largest economy by 2030, putting it ahead of the developed nations of Germany and the U.K., a new report by McKinsey Global Institute showed Tuesday.”
The easiest investment vehicle for the above single countries or emerging markets is non other than unit trust or mutual fund. For Asians, particularly Singaporeans, Indians, Hong Kong or Malaysians, Fundsupermart is strongly recommended. Only in this platform investor can find ample opportunity to switch in their fund for investment ever handily.
Avoid Standing Idle
There will surely be road bumps or hip-cup here and there, such as European country elections in French or Germany, oil price rout, Grexit an episode going to be repeated, etc, but those will present even more buying opportunity on the dips. This view is advocated by Daniel Loh, one of the Singaporean Prominent investors and trainers.
There are still a sizable investors standing on the sideline to watch market development due to the hang over fear effect of the past 2 years. But with Trump coming in as US president, the entire world economic has changed. Whatever happened in the past or past market pattern, will not longer valid for future projection.
A rare opportunity like this may not last long, it may only take a year or two. As we all know the US Bull is getting too old. Anything can happen when the Fed raises its interest rate to, say 1.25 or 1.75. If the market is hitting hot and glowing where common folks like taxi drivers are all jumping in stock market by then, the party is most probably over any time. So the opportunity for investment is non other than now, the starting of 2017. I hope we all take courage to jump into its ride to our advantage.