The ability to predict the future would be useful in the stock market. Such a power would let you accumulate wealth in no time at all.
Of course, that’s not how the world works. But we’re still going to try our hardest.
Last year, we saw slower growth in emerging Asian markets (mainly China) along with crude oil prices plunging around by around half. These two events led the global economy downhill resulting in lower stock prices.
In fact, Japan could see the last of its four-year bull run with uncertainty surrounding the U.S. and China’s short-term recovery.
History shows that in past rate-hike cycles, Asian stocks are often 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 saying that oil prices will recover in the long run, there’s still some hope.
This article features the three best countries to invest for this year, along with our three favorite sectors.
Three Best Countries to Invest in for 2016
1. The Philippines
Home to one of Asia’s highest GDP growth rates, forecast at 6.9% for 2016, The Philippines will hold presidential elections this year.
They’re expected to boost confidence in the country – especially since its currency is among the least vulnerable to rising U.S. interest rates.
2. South Korea
Many stocks in Korea are traded at less than their book value and half of their historical average, all while dividends rise. That, combined with relatively strong demographics and growth, makes South Korea ready to rebound into recovery.
With 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.
Indonesia also boasts a high GDP growth rate of above 5%. The nation is in a great place to beat investors’ already low expectations.
Three Best Industries to Watch in 2016
Just keeping eyes on the countries themselves would not be enough without specific sectors to keep track of. Overall economic improvement doesn’t mean that all sectors will benefit.
With different positions and plays, only a few are likely to stand out from the crowd.
A dark horse among sectors, healthcare has overtaken many favorites to be a top 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.
Wealthy baby boomers are now at an age which requires regular medical checkups and care. As a result, the healthcare industry has few places left to go except upwards.
Always a favorite among investors since the turn of the century, the tech sector hasn’t ceased in its creation of valuable services and infrastructure. Asian firms continue to innovate, and next year will not be any different.
3. Real Estate
Real estate investment trusts are in a strong place for growth, especially with the current trend among millennials being averse to owning property. With great demand for affordable housing in notoriously expensive areas, rental yields will rise in most Asian markets.
With all of that said, InvestAsian wishes our readers a prosperous new year ahead! We believe Asia’s rapid growth will certainly continue.
EDITOR’S UPDATE FOR 2018: If you’re looking for an updated list, here’s a newer article about the best countries to invest in Asia for 2018.
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