Dear Friends,
With the concern of rising inflation and record oil prices, major markets have been moving laterally, trying to digest the news. There are clear indicators that the global economies are slowing down after 2 years of blistering growth. US has just announced another record trade deficit and Singapore's growth estimate has been revised downwards. Amidst all these bad news, there are multiple sliver linings. Oil prices are moving down and the US Federal Reserves is still committed to a controlled hike in interest rates. World economies are still growing and companies are still making decent profits. With such a mix basket of news, it is of no surprised that the market is moving sideways. In my opinion, the markets will continue to be moving laterally for a while longer. However, there may be short term weakness to come in the following months. Therefore, it will be reasonable to take some profits and prepare cash for the next move upwards.
This has been a testing time for the investment team due to uncertain market conditions. However, most of the strategy that we have been using has preserved many of our clients' Investment. For example, we have been unfavorable of the India's short term valuation since January and has moved some our client's portfolios who have a weightage on the India market, and moved it to other relatively more undervalued markets. To date, India has dropped 13%. India is still a very attractive story in the long term. Perhaps we will move back into it once valuation becomes more attractive.
Here is a piece of good news for all of you. One of the partners of IPP has acquired a building in Shenton Way and we will be moving in the next couple of month. We will be able to serve you better ,with a walk-in customer service center and improved infrastructure. It is our goal to be one of the premier wealth management firm in Singapore and our committment to be serving you for many years to come.
With the concern of rising inflation and record oil prices, major markets have been moving laterally, trying to digest the news. There are clear indicators that the global economies are slowing down after 2 years of blistering growth. US has just announced another record trade deficit and Singapore's growth estimate has been revised downwards. Amidst all these bad news, there are multiple sliver linings. Oil prices are moving down and the US Federal Reserves is still committed to a controlled hike in interest rates. World economies are still growing and companies are still making decent profits. With such a mix basket of news, it is of no surprised that the market is moving sideways. In my opinion, the markets will continue to be moving laterally for a while longer. However, there may be short term weakness to come in the following months. Therefore, it will be reasonable to take some profits and prepare cash for the next move upwards.
This has been a testing time for the investment team due to uncertain market conditions. However, most of the strategy that we have been using has preserved many of our clients' Investment. For example, we have been unfavorable of the India's short term valuation since January and has moved some our client's portfolios who have a weightage on the India market, and moved it to other relatively more undervalued markets. To date, India has dropped 13%. India is still a very attractive story in the long term. Perhaps we will move back into it once valuation becomes more attractive.
Here is a piece of good news for all of you. One of the partners of IPP has acquired a building in Shenton Way and we will be moving in the next couple of month. We will be able to serve you better ,with a walk-in customer service center and improved infrastructure. It is our goal to be one of the premier wealth management firm in Singapore and our committment to be serving you for many years to come.
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