SNee,
This year is not a good year for us! First it was your passing on, then we were 'attacked' by the onslaught of financial tsunami. Now we are expecting a recession in the coming year as we are shrouded by bad news all over the world. If that's the case, so, what are we going to do?
Here are three manoeuvres for us to think about!
1. Hold Cash
The saying is ‘cash is king’ when a recession hits and the economy slows down. The money is available for emergencies such as job lost or to buy investments at bargain prices.
The saying is ‘cash is king’ when a recession hits and the economy slows down. The money is available for emergencies such as job lost or to buy investments at bargain prices.
We should not be completely inactive, we could actively pursue bargain funds or bonds.
2. Position Your Portfolio To Rise When Economies Fall
Many fund managers and investors are investing in companies that are felt to be better positioned during volatile times. For example, Prudential Fund Management Bhd prefers larger companies with strong balance sheets, significant cash holdings as well as companies that appear capable of maintaining a stable dividend policy. The fund company is looking at companies that serve domestic demand in countries like China and Indonesia.
Many fund managers and investors are investing in companies that are felt to be better positioned during volatile times. For example, Prudential Fund Management Bhd prefers larger companies with strong balance sheets, significant cash holdings as well as companies that appear capable of maintaining a stable dividend policy. The fund company is looking at companies that serve domestic demand in countries like China and Indonesia.
3. Start Buying
According to Prudential, Asia is now trading at a low level with price-to-book ratio of 1.1x, which was last seen during the financial crisis of 1992 and 1988. Asia’s dividend yields stand at 4.8%. If you believe the long-term outlook for Asia is strong, can stomach further volatility then why not do as Soros and Buffet have been doing? Clearly valuations are cheap and there are buying opportunities. To guide you, the iFAST Research Team have rated markets and written several articles explaining their ‘very attractive’ ratings. Refer to Why 4 Stars Rating on Thailand? and China: At its Most Attractive Level in the Past Decade!
According to Prudential, Asia is now trading at a low level with price-to-book ratio of 1.1x, which was last seen during the financial crisis of 1992 and 1988. Asia’s dividend yields stand at 4.8%. If you believe the long-term outlook for Asia is strong, can stomach further volatility then why not do as Soros and Buffet have been doing? Clearly valuations are cheap and there are buying opportunities. To guide you, the iFAST Research Team have rated markets and written several articles explaining their ‘very attractive’ ratings. Refer to Why 4 Stars Rating on Thailand? and China: At its Most Attractive Level in the Past Decade!
The above considerations are adapted from an article (fundsupermarket.com) and it is authored by iFAST Editorial Team. This website is worth visiting as it provides knowledge enlightenment for us to ponder!
Posts
0 comments:
Post a Comment