Wednesday, March 1, 2017

Asia and China could do well in 2017


Well I think that emerging Asia - China looks quite attractive, for how long? who knows. But for the next 3 months money can flow into China. The economy has surprisingly has begun to do quite well. We see that in retail in Hong Kong, we see that in the Hotel industry and we see that in the demand for Commodities. 

What has done relatively well is selected commodities. Last year Zinc and Iron Ore were the best performing asset. This year Copper has been very strong, Gold last year was up 9 percent, this year is again up 9 percent. So I think investors should again be investing in Resource Stocks. Because when you really look at Trump and his Administration, I think further money printing down the line is inevitable. Maybe they increase rates a little bit here in March, that is possible. But the bond markets will have already discounted it. 

So bonds are relatively undervalued compared to Equities. And Emerging Markets are relatively undervalued, Resource stocks are undervalued, and I think Consumer Staples are also reasonably priced as well as REITS. I have a large exposure to REITS in Singapore and Hong Kong.