FSM Invest Expo 2018: Here’s What You Missed
FSM Invest Expo 2018 was a success, with more than 1,800 investors and investment specialists gathered under one roof, at the Suntec Convention Center, to share ideas on investment ideas and market outlook. This year’s event centred on investment themes and what investors should expect with regards to market outlook.
Investment ideas for profitable returns based on risk appetites and investment needs were up for grabs, shared by high profile investors and experts. In attendance were 16 event partners from some of the largest investment firms such as UOB Asset Management, BlackRock, Fidelity International, iFast Global Markets and Lion Global Investors.
ZUU online was among the proud media sponsors of the event.
Attendees were allowed to interact with the event partners to gain an insight on global and local markets as well as investment ideas worth implementing. Presentations from distinguished industry experts covered topics such as:
“What Do We See for Markets in 2018?”, “STI to Hit 4,400 Points by End-2019”, “FSM MAPS: Building Portfolios for Life” and “Bonds: An Asset Class that Belongs in Every Portfolio”
Key Investment Forecasts
One of the key investment themes that came out of FSM Investment Expo 2018, is the accelerated growth in the global economy – which is set to grow by 3.7% in 2018, compared to 3.6% last year. U.S economy is expected to expand by 2.6% with China growing by 6.4%. Emerging markets of the likes of Brazil and Russia are expected to record continued recoveries.
Inflation is expected to rise to 3.1% in 2018 but could drop to 3.0% in 2019. High inflation in 2018 will be as a result of lower commodity process last year.
Expectations is high that monetary policies which have been in operation since the financial crisis will start to ease off. Central Banks are expected to reduce asset purchase programs and shift towards raising rates as economies continue to stabilize at the back of solid growth.
The U.S central Bank could normalize interest rates much quicker than expected should inflation tick higher. European Central Bank is also expected to join the FED in normalizing policy, as the region’s economy continues showing signs of robust growth. Experts don’t expect Bank of Japan to normalize policy quickly.
More earnings upgrades are expected in 2018 with developing markets of the U.S and Europe expected to post 8% earnings growth. Emerging markets in Asia are also expected to post positive earnings momentum.
Equities are expected to edge higher at the back of high volatility. Asia equities should continue to power high with revision cycle expected to be the main catalyst. Normalization of policy in the U.S should remove some excess liquidity which could cause volatility to normalize higher.
For the first time since 2011, Asia economy experienced upgrades last year, a trend that is expected to continue in 2018 according to iFAST. Higher returns in the markets are expected to be driven by growth in China, South Korea, Taiwan, and Singapore.
Kean Chan, the Manager of Research & Portfolio Management at iFAST, remains Positive about China in the wake of a strong performance last year. Earnings growth should continue this year driven by multiple expansion.
According to Chan, investors should:
- Overweight equities vis-à-vis fixed income
- EMs & Asia ex-Japan set for outperformance; underweight the western DMs
- Current fixed income landscape offers little opportunity; maintain defensive stance and priorities capital preservation
- Rising risk-free rates could hurt credit spreads’ segments.