The ability to predict the future would be useful in the stock market. Such a power would let you accumulate wealth as surely as Warren Buffet in no time at all. But that’s not how the world works.

However, you can predict with more or less precision how the stock market will perform with reliable analysis and consensus from the experts.

Last year saw slowing growth in emerging markets (mainly China) along with a plunge in crude oil prices to half of what they used to be. These two events led the global economy downhill resulting in lower stock prices at the end of 2015.

In fact, Japan could be seeing the last of its four-year bull run, especially with uncertainty surrounding the US and China’s short-term recovery. History shows that in past rate-hike cycles, Asian stocks are more than likely to be hit hard for about half a year until the US fully recovers and leads the global recovery.

But the future is not all bleak. With OPEC’s latest report citing confidence that oil prices will recover in the long run, there’s still some hope.

This addition features the three best countries to invest in for this year, along with our three favorite sectors.

 

 

Three Best Countries to Invest in for 2016

 

The Philippines

Proudly home to one of Asia’s highest GDP growth forecast at 5.9% for 2015, The Philippines will be holding presidential elections this year which is expected to boost investors’ confidence in the country, especially with its currency one of the least vulnerable to rising US rates.

 

South Korea

With many stocks being traded for less than their book value and at a discount half of their historical average, all while dividends grow, South Korea seems ready to rebound into recovery.

 

Indonesia

With the high possibility of rate cuts from the central bank combined with a substantial increase in infrastructure investment, ASEAN’s largest economy is one to watch. Also boasting one of the highest GDP growth rates at 4.9%, the country is in a great place to beat investor’s already low expectations.

Just keeping eyes on the countries themselves would not be enough without specific sectors to keep track of. The overall improvement in a country’s economy does not mean that all sectors will benefit. With different positions and plays, only a few are likely to stand out from the crowd.

 

Three Best Industries to Watch in 2016

Healthcare

A dark horse among sectors, healthcare has overtaken many favorites to be 2016’s best pick. This isn’t without reason. It’s only when times are hard that people realize there are many luxuries in life they can do without. This is where healthcare comes in.

With more wealthy baby boomers now at an age that requires regular medical checkups and care, the healthcare industry has nowhere to go but up.

 

Technology

Having always been a favorite among investors since the turn of the century, the tech sector hasn’t ceased in its creation of valuable services and infrastructure that businesses and consumers alike are spending their hard earned money on. 2016 will be no different.

 

Real Estate

Real estate investment trusts are in a strong place for growth in 2016, especially with the current trend among millennials being averse to owning property. With great demand for affordable housing in notoriously expensive areas fueling the trend of smaller units, rental yields are expected to be higher in most Asian markets.

 

With all of that said, InvestAsian wishes all readers a prosperous year ahead and hopes to continue being a part in your investment decisions.

Happy new year!

About Phuong Huynh

Phuong Huynh is a serial entrepreneur with several successful companies under her belt. She writes for InvestAsian concerning topics about Vietnam, Cambodia and Laos.

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