This Is How INVEST Fair 2018 Sharpened my Investment Focus
INVEST Fair 2018 ended on a high note, with over 8000 people turning up for the weekend-long event at Suntec City Convention Centre. In attendance were heavyweight exhibitors like Phillip Capital, CGS CIMB, CME Group, TD Ameritrade Singapore, City Index by Gain Capital, Value Investing College (VIC), Synapse Trading, Funding Societies and SingCapital. Admission was free for the mega investment event hosted by ShareInvestor (a unit of Singapore Press Holdings).
ZUU online was proud to be the media partner for the event.
Attendees were truly spoiled for choice this year, as there was so much to see and do. The fair really lived up to its theme “Engage” as all four seminar rooms were packed with attendees for the back-to-back panel discussions and talks, and the exciting Phillip Capital’s Stocks & Funds Auction Games.
At the same time, the rest of the exhibition area was buzzing with activity, including the Fintech Zone, the Crypto Zone, Corporate Connect by SGX, the ASEAN Pavilion by Maybank Kim Eng and the Trading Zone powered by CME Group and TD Ameritrade Singapore.
Here are some of the highlights from INVEST Fair 2018.
What we can learn from institutional traders
Keynote speaker, Anton Kreil, from the Institute of Trading and Portfolio Management, debunked some common myths about institutional or professional traders.
Despite the common belief that institutional traders trade in and out of the market all the time, Kreil pointed out that the myth was completely false. In fact, professional traders rely on fundamental analysis for 80% of their investment decisions and only rely on technical analysis for the remaining 20% of their investment decision. That means they are very selective in the trades they make.
Kreil also added that institutional traders had to follow a systematic process to identify the stocks they were going to invest in, a discipline that takes up to 3 months to master. That, he says, is something retail traders can learn from.
Kreil also offered some interesting tips for retail traders to improve their trading success. He advised retail traders to have an investment mandate. That means, deciding how much risk they are willing to stomach for their trades, as it also determines how much upside they could possibly get in return.
At the same time, Kreil recommended that retail traders invest with a one to three month timeframe in mind. “This is the sweet spot, the timeframe that professional and institutional traders trade in,” Kreil told attendees. “If you can make month in this time frame, you can make money anytime.”
Stock picking in a rising interesting rate environment
Kelvin Wong, the Chief Technical Strategist for Asia at City Index by Gain Capital, told investors that the best way to select stocks in the current environment was by understanding the current macro environment, its potential impact, before looking at the key financial ratios of the different stocks and how they differed from those of other stocks in the same country, region and sector. Finally, investors only look at technical analysis before making their investment decision.
At present, with the cost of funding set to rise, there could be a potential slowdown in global growth, particularly with the possibility of a full blown trade war between the U.S. and the rest of the world.
To that end, Wong expects to see increased volatility in asset prices, including stocks, forex and commodities. In particular, he expects to see a downward pressure on commodities, arising from the strong US Dollar.
What does he expect will do well?
Defensive stocks with little debt and strong balance sheet, as well as financial services stocks with revenues that are dependent on higher volatility of asset prices.
What will underperform?
Commodities, basic materials & industrials stocks.
Some of Wong’s stock picks include, Singapore-listed Japfa and Sheng Siong Group, and U.S. listed CME Group, Hormel Foods, & Schlumberger.
Will the bull run in U.S. continue?
The panel discussion led by Chris Brankin, A.J. Kahling, Scott Connor & JB Mackenzie, from TD Ameritrade Singapore, were unanimous that the bull run in the U.S. market still has legs to run.
Why was that?
The panelists pointed to the strong corporate earnings in the recent US 2Q results season, where over 80% of the S&P500 companies reported better than expected earnings, as well as the low inflation rate in the U.S. as two of the key factors. What’s more, despite the expected two to three more rate hikes in the next one year, interest rates were still at a historic low, and the panel did not expect the Federal Reserve to spring any surprises on the market in the near future.
As long as these elements continued to hold, the team at TD Ameritrade Singapore believed the bull run would continue.
In fact, they expect the market to do even better if the trade war is sorted out, and if President Donald Trump stops tweeting.
Here are some more pictures from this year’s event:
Keen on learning about the latest in investment news? Then keep an eye out for the next INVEST Fair.