2017 is an uncertain year to step into. We are not just referring to the investment outlook, but world politics as well. 2017 will be filled with multiple elections in Europe (Germany, France, and the Netherlands) and major decisions will be made throughout the year (think Trump, Brexit Article 50, Federal Reserve rate hike).
Amidst the festive cheers, investors have to be prepared for a tough 2017, warns Maybank Kim Eng (MBKE). Against the backdrop of tepid global growth, near-term fundamental growth challenges to key financial services, property and energy-related sectors, Singapore’s forecasted growth for 2017 has been reduced to a range of merely one to three percent.
DBS Research (DBS) expressed confidence in growth among Asian economies to remain intact as a whole. DBS believes that four investment themes will continue to thrive in Asia in 2017.
Fed’s recent decision to raise interest rates and adopt a hawkish tone in its Federal Open Market Committee (FOMC) statement to the market is a reminder of the health of US’s economy. Throughout 2016, the strength of the US economy has prompted investors to keep their focus on the US market.
December is usually a quiet month as everyone is in holiday mood and leaving new year resolutions to the start of next year. But why follow the herd when you can move ahead of others in investing?
Gold has fallen from grace since Trump’s victory as president of the US. Gold, which was believed to be the perfect hedge against any “freak result”, has now become a “lousy” investment choice in 4Q16. As we head into 2017, we re-examine whether gold should still deserve a spot in our portfolio.
2016 has been a turbulent year. Fears of a rate hike cycle, slowdown in growth leader China and falling oil prices sent shock to the markets. The losses were subsequently offset by a rally on the back of improving U.S. economic data and new stimulus measures in China. Despite the occurrence of two “black swan events” (Brexit and Trump’s victory) that were expected to catalyse a crash in the stock market, the market recovered and the bull run continued.
Countries in Asia are seeing an increase in the percentage of older people, which can be attributed to reasons such as improved longevity, the post-war "baby boom" and declining fertility rates. Credit Suisse (CS) also observed that emerging markets (EMs) population is ageing much more quickly than that of developed markets (DMs).
Trump’s short-term fiscal stimulus promise has raised investors’ expectations of a rate hike in December. S-REITs, probably the biggest loser in a rate hike cycle, have retreated by a significant amount over the last month due to the steepening yield curve expectation. As a result, some REITs are now trading at a 52-week low.
As we approach the end of the year, it is again the time to review our portfolio performance and plan for investments in the next six months to one year for 2017.