Feb 13, 2018

Market Correction! 3 Sectors You Can Buy Into

The recent market correction sent the news media into a frenzy, declaring that the stock market has "collapsed" or "crashed". The truth is that the stock market simply has gone way above its valuation and a good 10% correction will do some good to trip the fats down. Prior to this market cycle, it is normal to have a 10% correction on an annual basis, and it is a combination of easy money and low inflation that lead to years such as 2017 which we did not see a single correction despite a tightening monetary environment. However, is it time to throw your entire wealth into this window of opportunity and ride the market right to the stop? 

Once again, I will like to caution my readers that we are at the tail end of the economic cycle and the big crash might come in a year or two. So while it is a good thing to take advantage of this opportunity, investors should be selective in selecting sectors which are not overly expensive and be prepared to take profit when the opportunity is ripe. Here are the 3 sectors that are interesting to watch in the coming year.

Feb 1, 2018

Xeo's Annual Investment Review & Outlook 2018

Dear Friends,

2017 was a good year for the global stock market with the Asian stock market doing the best thanks to a combination of low inflation, low interest rates and a recovering Chinese economy after the hiccups suffered in 2016. The geo-political volatility caused by Brexit and Trump winning the US Presidential election was generally absent in 2017. The greatest geo-political risk of 2017 was the confrontation between North Korea and America, but even that fails to rattle the stock market as few people actually believe that a real military confrontation will ignite from the war of words. The most exciting development of 2017 was probably the rise of cryptocurrency as a potentially new asset class, with the prices of top traded cryptocurrencies such as Bitcoin and Ethereum soaring by a few hundred percent. The worst performing asset was surprising, the US dollar which lost 9% in Singapore dollar. Back in 2016, many analysts predicted that the USD will rise, thanks to the trade protectionism and tax friendly policies of the Trump administration and the rising interest rates. Instead, USD fell, in one of the worst routs seen in recent years. The question is, as the Trump administration policies started to be implemented and interest rates continue to rise, will the USD climb back in value?
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