An investor does not need to be a Taylor Swift fan but should still grasp the impact she has on the economy. On the opening night of her Eras tour in Arizona in March 2023, the concert resulted in more revenue for local businesses than the Super Bowl, which had been played earlier in February in the same stadium.
Mr James Cheo, chief investment officer at HSBC Global Private Banking and Wealth (South-east Asia and India), used this example to illustrate the need to understand the drivers of the economy. He was speaking at a market outlook event for HSBC Premier Elite customers on Feb 6 held at the Mandarin Oriental hotel.
Mr Cheo noted that 2023 was a year to be invested. China stocks fell 11.2 per cent and oil fell 3.8 per cent, according to HSBC research, but stocks elsewhere and other asset classes showed strong growth.
Apart from the United States technology sector, which delivered 55.1 per cent growth, other examples of positive performance came from hedge funds which were up 4.4 per cent, and British stocks with 14.1 per cent growth. India stocks surged 20.8 per cent.
Mr Cheo said: "The message is that in 2023, if you didn't invest, you would have lost out. Everyone thought that the US was going to crash but the US economy was resilient, with 70 per cent of the economy as consumers. This year, the US economy is unlikely to fall into a recession.
"We see pockets of resilience in Asia; China is not going to collapse and will grow. India is expected to grow around 6 per cent." Asian economic growth rates remain positive. For Asia ex-Japan, the rate is 4.5 per cent.
Another reason for entering the markets now is that markets tend to rally before the first rate cut by the US Federal Reserve.
One misconception is that US stocks are overvalued, but much of the gains in 2023 were driven by the large tech giants, said Mr Cheo.
Denne historien er fra February 25, 2024-utgaven av The Straits Times.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra February 25, 2024-utgaven av The Straits Times.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
'Football died' when Klopp joined Red Bull
BERLIN - Jurgen Klopp's decision to join Red Bull as their Global Head of Soccer has sparked strong reactions from many German fans.
ALCARAZ IN 'CRAZY' LOSS TO MACHAC
Spaniard can’t believe opponent’s level after defeat scuppers rematch with Italian Sinner
New arrivals at FIA after high-profile departures
LONDON Formula One's governing body announced two senior appointments after headline departures triggered talk of an exodus from the International Automobile Federation (FIA) led by Emirati Mohammed Ben Sulayem.
OLYMPIC RINGS OF FIRE OVER EIFFEL TOWER
French minister plans to wrest control of landmark from Paris mayor amid logo row
EVEREST CLIMBS TO GROUP 1 HEIGHTS
World’s richest sprint race gains recognition at its eighth running, as well as All-Star Mile
Heat stress Different work conditions require flexible guidelines on workers' attire
We thank Mr Rahul Gupta for his suggestions (Study standard heat-friendly work clothes for outdoor workers, Oct 8).
Airbus deliveries drop as suppliers struggle
PARIS Airbus deliveries fell 9 per cent in September to 50 jets compared with the same month in 2023, the European planemaker said on Oct 9, rekindling a debate over the strength of its industrial goals as suppliers struggle to keep up with demand.
Mental health ambassadors at all PAP branches by 2025
By 2025, all 93 People's Action Party (PAP) branches will have mental health ambassadors to promote mental well-being in every neighbourhood and support the work of MPs in addressing residents' mental health concerns.
Zelensky says there is 'real chance' to end war in 2025
He did not reveal how this could happen but is counting on support from key allies
Prabowo defends plan to expand government with ‘fat' Cabinet
JAKARTA Indonesia's Presidentelect Prabowo Subianto has defended his plan to expand government agencies, saying it is needed for a strong administration even if critics call it a \"fat\" Cabinet that will bloat the bureaucracy.