As the trade war between the US and China is cooling off, global stock markets have been all rushing to the top without taking a breath. This has made those who missed the opportunity to jump in during the big pull back caused by Trump’s accidental tweeting greatly disappointed.
However, I have to assure you that investment is for long term. The current run up is only a short-term event for the year end which is normally called window dressing activity as I have mentioned in the Facebook page. As soon as it passes through the new year breaking point, you will see a reversal of market direction. Profit taking activities will be evident. As long as you would agree with what I have shared in previous article about future investment opportunity, you have to be prepared before the time comes.
Since the trade war threat in the past two years did not hurt the US economy as expected by most economic analysts, the global economy perspective will turn a relief for next year. If there is a lack of negative surprises as we venture into 2020, analysts will change their analyses into positive tone. Before we hear those positive comment from economists, we might as well prepare ourselves well advance into taking the best opportunities provided by market pull back in due time.
I would nevertheless recommend investors pay attention to Malaysia funds. Malaysia market is the most beaten down market of all by the trade war. When the global economic scenario improves, the Malaysia market index will follow suit.
Malaysia Fund Recommendations
I would strongly recommend Kenanga Growth Opportunities Fund to be the best consideration for your investment attention. This is a newly risen star. It has successfully beaten all funds, nationally and internationally in Fundsupermart platform. It has garnered an annual return of surprisingly 41.95% in current reading (Table A). The amazing fact is that this fund had grown quietly while everyone was cautious about investment due to the negative environment and while Malaysia market index was also suppressed into negative return. It had outgrown itself into the one of the best performing mutual funds, if not the best mutual fund of the world, in the year 2019.
The small cap industrial is also the rare growth sector of the Malaysian economy for 2019, it will remain the same for 2020. For more technical or academic analysis please read research article posted by Fundsupermart. I would recommend investors pay attention to CIMB Principal Small Cap Fund and Eastspring Investment Small Cap Fund.
In the international front, another outshining fund would be the TA Global Technological Fund. It is also the best international fund of the year 2019 in the Fundsupermart platform with a yield of 41.71% as of current record (Table B). This fund was not only boosted by the recent US market run up, it was also sustained by other significant technological markets such as Taiwan, South Korea, China, etc.
If you are keen to invest into the big FAAG of the US market, this fund will bring you there. It has invested a larger portion of capital into Alphabet, Facebook, Apple as well as Microsoft (Table C). I believe the semi-conductor industrial or technological sector will still be the central growth catalyst of global market share for 2020. For more detail analysis, please refer to research article in Fundsupermart as well.
I still believe US market should not be neglected by our investment focus. It is the grow engine of the world economy. It is still having its upper space for growth moving forward. Therefore, I would recommend Manulife Investment US Equity Fund.
The European market index is now suppressed very much by the Brexit issue. Once this issue is resolved most probably by early next year, a relief of market growth will be a natural result. TA European Equity Fund can be a good consideration to get involved. To play safe, an alternative European exposure fund will be the CIMB Principal Global Titans Fund. This fund will be protected by US exposure partially.
China Related Funds
Lastly, we should not be bypassing the importance of China market growth potential, even though recent economic data portrayed a negative trending. But there is always a bottom to all negative eventuality. China government would most probably initiate more fiscal stimulus very soon.
But for safe consideration, I would recommend a mixed market exposure which has China market as significant contributor. Funds such as Manulife Investment Greater China Fund, Eastspring Investment Dinasti Fund and Global Emerging Markets Opportunities would be best in our radar (Table D).
You may wonder why I recommend so many funds in this article. The reason is simple; I do not see any major investment threat in front of us. The road to harvest is opened widely. If you have limited capital, then you may make a further study and choose your best options among them or even come up with your own favourite list of choices.
Wishing you happy investing for the best to come in the fat year ahead!
Happy New Year 2020!
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The view and opinion expressed are personal views of the author and are subject to change based on market and other conditions. This write up does not constitute sole advice for an investment decision. Investors are advised to do further reading and research to conclude individual decisions.