TISCO Bank Selects 3 Investment Themes in the Year of the Rabbit
TISCO Bank Launches 3 Investment Themes in the Year of the Rabbit Both create profits against the global economy, including the High Potential Country theme, such as China and Vietnam, 2. The High…
TISCO Bank Launches 3 Investment Themes in the Year of the Rabbit Both create profits against the global economy, including the High Potential Country theme, such as China and Vietnam, 2. The High Demand Sector theme, such as healthcare, technology and infrastructure, and 3. The high stability theme, such as US bonds and gold.
Mr. Nuttakrit Laothaweesup Senior Vice President, TISCO Wealth Investment Advisory, TISCO Bank Public Company Limited He revealed that even if there will be a risk of economic recession in 2023 The risk of inflation falling more slowly than expected and the risk of liquidity withdrawals from various central banks. But TISCO Bank sees that in the midst of every crisis there are hidden investment opportunities. And it has started to have good news supporting investment, as China has announced the opening up of the country. It is a factor supporting a better recovery of the Chinese economy, including the countries of the ASEAN region.
While stock prices in some countries and the price of some stocks It has been adjusted for the full year 2022, causing the value to fall below the 10-year historical average, which statistically stock prices often reflect future economic conditions , from about 6 months to 1 year, indicating that the market perceived risks in 2022. In addition, listed companies in some countries and some sectors still have high earnings growth rates amid the global economic slowdown.
TISCO Bank therefore believes that 2023 will be a year of investment opportunity. and to facilitate the allocation of investment portfolios TISCO Bank therefore divides the investment themes that have the potential to generate high profits in 2023, equal to 3 themes as follows:
- Country with high potential Economy – Profits, high growth companies, cheap stock prices
TISCO Bank recommends investing in countries with growth potential against the global economic slowdown. The stock market that is likely to perform better than the global stock market (Outperform) must be the stock markets of countries with high economic growth rates. Strong growth in earnings per share (EPS Growth) and importantly, valuations low enough to create a margin of safety for investments, including: Chinese and Vietnamese stock markets
The International Monetary Fund (IMF) expects China's economy to expand by 4.4%, while Vietnam's growth is 6.2%, while the global economy is expected to expand by only 2.7%, including growth of earnings per share (EPS). The stock markets in 2023 are also up at 17.3% and 13.2% respectively, in contrast to the stock markets of other countries. with slower revenue growth
- High demand sector Megatrend businesses are needed by the world, growing against the slowing economy.
In 2023, during the economic slowdown, TISCO Bank recommends looking for investments in sectors that tend to outgrow the broader market. It should focus on investing in groups that have high demand for goods and services and grow in line with global megatrends, as well as have the power to adjust product prices according to inflation (Pricing Power), which will result in income and profit of the business does not fluctuate according to economic conditions, including 1. Healthcare Equity Group benefiting from an aging society and advanced medical innovations 2. Recurring income technology group From the subscription fee of regular customers and there is also a trend to expand the customer base from the demand for applications such as cloud computing and cyber security. (Cybersecurity) which is the cornerstone of the business sector following the trend of Digital Transformation e 3. Infrastructure and public utility services that it is a necessary product and has high demand. This was supported by the energy shortage plagued by the long war between Russia and Ukraine. As a result, every country is trying to reduce the energy dependence of traditional fuels in order to transform the economy into Net Zero Carbon.
- High stability assets Create profits, not afraid of negative factors, recommend investing in US government bonds. Receive positive factors from the trend of high interest rates in 2023 and the opportunity to profit from rising bond prices. Including gold, which usually generates good returns during recessions and high inflation. and can stabilize the port
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