Interesting phase of the market
We are currently at interesting phase of the market.
Tech / internet stocks are trading at premium valuation. But these are companies that have sustainable growth for the next few years.
Value of a stock is PE relative to its growth. If this is true, then the tech / internet stocks present the best value.
Examples are Apple, Alphabet, Amazon, Facebook, Cisco, Microsoft, Tencent etc.
Minus out the internet and tech stocks, the non-tech stocks are trading at historically 5 years low valuation.
Examples are Starbucks, Disney, Pepsi, Hershey, Comcast etc.
China insurance peneration rate is still the lowest in Asia. Insurance companies with huge presence in China will likely to generate multi-years growth.
Beneficiaries are AIA, Ping An Insurance, China Life Insurance.
China internet peneration rate is still low at 53%. China's e-commerce peneration rate in retail space is 20%. As China population gets affluence, internet peneration will rise and ecommerce peneration rate will improve.
Beneficiaries are Baidu, Alibaba, Tencent, JD.Com.
With stock market facing a correction, this presents good opportunity to buy more equities.
Though the long term outlook is good, that does not mean we will not face short term market volatility. With 10 years yield rising towards 3%, cost of borrowing for corporates will increase.
Tech / internet stocks are trading at premium valuation. But these are companies that have sustainable growth for the next few years.
Value of a stock is PE relative to its growth. If this is true, then the tech / internet stocks present the best value.
Examples are Apple, Alphabet, Amazon, Facebook, Cisco, Microsoft, Tencent etc.
Minus out the internet and tech stocks, the non-tech stocks are trading at historically 5 years low valuation.
Examples are Starbucks, Disney, Pepsi, Hershey, Comcast etc.
China insurance peneration rate is still the lowest in Asia. Insurance companies with huge presence in China will likely to generate multi-years growth.
Beneficiaries are AIA, Ping An Insurance, China Life Insurance.
China internet peneration rate is still low at 53%. China's e-commerce peneration rate in retail space is 20%. As China population gets affluence, internet peneration will rise and ecommerce peneration rate will improve.
Beneficiaries are Baidu, Alibaba, Tencent, JD.Com.
With stock market facing a correction, this presents good opportunity to buy more equities.
Though the long term outlook is good, that does not mean we will not face short term market volatility. With 10 years yield rising towards 3%, cost of borrowing for corporates will increase.
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