.png)
From the Just Service Global Investment Committee
Positive Themes:
Selective Technology: While corrections are likely this year, the sector remains fundamentally strong due to AI, IoT, and 5G. Focus on undervalued, high-growth areas within technology, excluding Netflix.
Healthcare: The industry is poised for significant growth driven by digital transformation and AI. Additionally, consider the Hospitality & Luxury Goods and Services industries for potential opportunities.
ASEAN: This region is expected to outperform globally, led by Vietnam and Indonesia. Actively invest (DCA) in these regions now to capitalize on their growth potential.
Neutral Themes:
US Economy: The upcoming election creates uncertainty, but historical data suggests minimal impact on the stock market. However, geopolitical considerations remain relevant. The economy and the stock market can diverge in performance.
Negative Themes:
China: While concerns persist, a significant slowdown is not guaranteed. The current market conditions might present a compelling entry point. Consider investing in actively managed China funds that can navigate the complexities of the market. Waiting for perfect economic news could lead to missed gains.
Emerging Markets (EM): Challenges like global slowdown and rising interest rates exist, but lower US rates could be highly beneficial. EMs currently offer potentially better value and lower risk compared to US equities. Invest strategically before US rates decrease.
Commodities: The shift towards renewables is ongoing, but intermittency issues and global headwinds could lead to price increases. The downward trend may be reversing. Commodities are likely undervalued relative to equities.
Heads or Tails:
Cryptocurrency: The outlook remains highly uncertain and volatile. Invest cautiously with a high-risk tolerance. Bitcoin might reach $75,000 soon, followed by a correction and then a potential rise to $100,000+ by October 24th, but expect significant fluctuations.
Additional Considerations:
US Election: The market might correct in October before rallying year-end, potentially reaching new highs for the S&P 500. Significant deviations from current highs could present attractive buying opportunities. Focus on low PE, high-quality tech stocks or funds.
Stay informed about the candidates' economic platforms and potential market reactions.
Favored Sectors:
Selective Technology: Prioritize undervalued areas with strong growth potential and robust earnings.
ASEAN Economies: Actively invest in these high-growth economies with strong fundamentals. Increase exposure when US interest rates decrease and the perception of China improves.
Emerging Markets: Invest strategically before US rates decrease to capitalize on potential benefits and potentially better value compared to US equities.
Less Favored Sectors:
China: While a slowdown is a possibility, the current market offers a potentially attractive entry point. Consider investing in actively managed China funds.
Commodities: The sector is likely to be volatile, but prices might be rising due to various factors. Commodities are likely undervalued.
As always talk to your adviser within the Just Service Network if you would like information or otherwise review your personal financial planning.
For all enquiries talk to your adviser or email info@justserviceglobal.com
Regards
The Just Service Client Service Team