Weekly Market Updates
Markets continue to trade sideways in the absence of bullish and bearish factors. The US markets edged into the green for the week but nevertheless, on a year-to-date basis, haven’t really changed much.
With the all-important Jackson Hole Symposium somewhat yielding expected hawkish results, investors are now turning their attention to the 19-20 September 2023 Federal Open Market Committee (FOMC) for guidance on Q4 2023.
China has also recently stepped up to help bolster its economy and new home sales. Additionally, a lifting of stamp duty on trading may also aid in Chinese investors’ flow of capital back into the cheapened Chinese risk assets. Investors are certainly expecting more aggressive policy support, but regardless, it's still a good start for things to come.
We are still of the view that there might be a potential market pullback of around 10%-15% given the overt optimism among investors.
Main Index & P/E Ratio-3 years
On the side of alternative investing, we continue to push for oil play as we view oil prices as having an upward trajectory given the lack of infrastructure in harvesting and processing oil as compared to global demand. Any rebound in the Chinese economy will also likely be a bullish factor for oil prices.
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