Introduction: This Time, It’s (Really Not) Different
Held at Suntec Convention Centre, our online and virtual hybrid event roped in a huge crowd of investors eager to start the year with fresh and relevant investment insights. We thank our event sponsors, without whom this event would not be the success it was. They are Capital Group, Eastspring Investments, iFAST Global Markets, J.P. Morgan Asset Management, Lion Global Investors, Nikko Asset Management, UOB Asset Management, BlackRock, CSOP Asset Management, Franklin Templeton, Schroders, and SGX Group.
Recap of the sessions at the Main Stage during FSM Invest Expo 2023.
This time it’s different! Or is it? This phrase first penned by Sir John Templeton, investing pioneer, has somewhat of a sacrilegious status in the investment circle as fiscal leaders with bulletproof confidence that the economy was different would face swathes of criticism from pundits claiming the opposite. Our iFAST research analysts, industry leaders, and fund managers dismantle the this-time-its-different syndrome with FSMOne’s annual flagship event Invest Expo 2023, back in-person for the first time since COVID-19 pervaded into the normalcy of our everyday living.
This time was different as investors dabble into cryptocurrencies for a quick buck, before some cryptocurrencies fell off the cliff in 2022. The investor who buys into trends and hot issues is in a vulnerable spot – as their focus on ingrained investment principles such as discipline and diversification may recede into the recesses of their minds. And this could spell dire consequences when markets are volatile. Thus, our presentations center around going back to timeless, classic concepts such as value investing, dollar-cost averaging, and eliminating emotional decisions in financial choices. In short? Read between the lines, invest in educating yourself, and realise that this time, it really is not that different in many aspects.
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Key takeaways
1. A recession is on the horizon. But this downturn presents numerous opportunities in selected markets.
2. Fixed income is currently more attractive, being poised for better risk-adjusted returns.
3. Value investing is not an antiquated strategy. There is wisdom in the classic methods.
4. Dollar-cost averaging may offer higher returns in a bear market.
Presentations
Main Hall stage and audience. Opening address by Jean Paul Wong, General Manager of FSMOne.com Singapore (pic 1).
I. Macro outlook, starting with fixed income in 2023:
What is the financial climate like now? Here is a macro outlook for 2023.
Stop dreaming about 2% inflation! Time to start getting prepared for an era of high inflation and mortgage rates. Tan De Jun, CFA (Assistant Manager, Research, iFAST) and Zheng Bolun (Research Analyst, iFAST) look towards blaring red indicators that signal that the world is moving into a new regime where structural forces will lead to a more persistent rise in inflation in the years to come. The Chinese presentation was delivered by Bolun.
This time is different. Really? Christopher Tan (Chief Executive Officer, Providend Ltd) revisits and analyses financial market movements in the past. This historical perspective provides some clarity for investors, helping to navigate the uncertain times now. When it rains, you put up an umbrella. In a bearish market, you continue investing.
Why investing isn't going to be the same as before. Alvin Chow (Dr. Wealth) takes stock of how the new normal changes the way we invest. Key events from the Fed turning hawkish with one of the steepest rake hikes of recent times to the long-term investment case for China were discussed.
3 Reasons to remain cautious on the USD, and another WARNING on cryptocurrencies. Cyrus Ng (Research Analyst, Research and Portfolio Management, iFAST) warns about the tough situation of cryptocurrencies following the FTX collapse.
…We believe fixed income is an attractive option.
Stocks are no longer the only option. Here’s why fixed income is returning to the forefront. Yeo Hui Shi (Senior Research Analyst, Research and Portfolio Management, iFAST) discusses why more attention should be paid to fixed income opportunities. She highlights areas such as high quality investment grade bonds and short-duration focused bonds as opportunities.
Invest in Asia sustainable bond opportunities with a total-return strategy. Goh Rong Ren (Portfolio Manager, Fixed Income, Eastspring Investments) provides insightful learnings into the integration of material environmental, social and governance (ESG) factors in investing and improved investment outcomes in the long term. The combination of an ESG focus and total-return approach is believed to help optimise risk adjusted-return while achieving investors’ ESG goals.
Bonds are Back! Jonathan Liang, CFA (Managing Director, APAC Head of Investment Specialists, Global Fixed Income, Currencies and Commodities, J.P. Morgan Asset Management) introduces an unconstrained and flexible approach to differentiate and invest in fixed income sectors. For investors on the hunt for high-grade and high-yield allocation ideas, this will help guide you to seek optimal income potential while managing duration and other risks over time.
… There are still bright spots in Equities. Here is why:
The recession drumbeat is getting louder. Here is a shopping list for equity markets. Colin Low (Assistant Manager, iFAST) shares on the unavoidable impending global recession as central banks are expeditiously raising policy rates at the expense of growth. We will always have economic cycles, and no economy will be spared from periods of negative growth. We are positive on three markets: the US, ASEAN and Japan, and leave you with recommended products from each market.
No storm lasts forever. Why this time it’s different for commodities and what it means for investors. Chloe Nadia Halim (Research Analyst, Research and Portfolio Management, iFAST) spotlights the commodity sector and elaborates on structural drivers behind our positive outlook for commodities, which includes the green transition and extreme weather patterns.
Investing in a world in transition. Andy Budden (Investment Director, Capital Group) maps out major market trends and identifies opportunities in specific sectors. It’s time in the market, not timing, that is more crucial as staying on the sidelines amid market turmoil has rarely paid off historically.
…We step into discussions of China, Japan, and the ASEAN market.
Welcome back, Japan. Junichi Takayama (Investment Director, Nikko Asset Management) and Darius Foo (Head of Intermediary Business Development, Nikko Asset Management) analyses the outlook for the Japan market as Japanese companies reported strong earnings and share buybacks are expected to reach an all-time high in FY2022.
Singapore market highlights going into 2023. Geoff Howie (Market Strategist, Singapore Exchange), creator and author of the SGX Gateway Report which has served investors since 2012, analyses Singapore’s financial market in 2023.
The China of the next decade will be vastly different from the China today. And this is bad news for investors. You Weiren, CFA (Senior Portfolio Manager, Research and Portfolio Management, iFAST) warns China-focused investors that now is ever more so critical to align your portfolios with the state’s priorities: SOEs and companies that operate in favoured industries.
…Here is the other side of the coin: a brighter perspective on China’s long-term economic ramifications.
Step through to the future of China. Colin Ng (Head of Asia Equities, UOB Asset Management) deep dives into the irreversible structural opportunities for the second largest economy in the world, as China transitions from a high-speed economy to one of high-quality growth… and we couldn’t warn you enough on cryptocurrencies.
II. Evergreen investing strategies
…What makes a good investment strategy?
Building diversified investment portfolios that can last longer than forever. Colin Low (Assistant Manager, iFAST) shares the approach FSM Managed Portfolio (MAPS) takes to portfolio management and a step-by-step process on how we construct diversified portfolios from scratch.Find out more about MAPS here.
Dividend investing in a high inflationary environment. Rusmin Ang (The Fifth Person) shares how to identify a high-quality Real Estate Investment Trust (REIT) and factors to consider when evaluating a REIT for your portfolio. REITS are a steady investment that historically returns well during inflationary periods.
Why dollar-cost averaging (DCA) Is a sensible way to invest during a bear market. Timothy Ho (Dollars&Sense) provides insight into how DCA can be a safer, more conservative long-term strategy worth considering when prices are declining instead of a lump-sum approach. For those looking out to invest a small fixed sum of money regularly, check out our FSM Regular Savings Plan which gives you a disciplined way to stay invested irrespective of market conditions.
…Learn how to divorce yourself from emotional financial decisions.
Turning fear into opportunity. Chin Hui Leong (The Smart Investor) dives into the investor’s psyche, breaking down how fear can consume investors, and how we can understand it and make wise investment choices with it, especially given the pessimistic, anxiety-ridden investing environment in 2023.
Adopting a successful mindset as an investor. Dawn (SG Budget Babe) and Reggie (The Financial Coconut), who have an intimate understanding of the public’s investment woes, break down the mindset of a successful investor.
…Here is a fresh topic as we uncover the capabilities of artificial intelligence (AI).
Embracing Artificial Intelligence of Investments. Ong Ai Ling (Head of Artificial Intelligence of Investments, Lion Global Investors), addresses the questions of whether AI can truly be applied to investment decisions and if we trust it to manage a multi-million portfolio. As systematic investing grows larger in significance, learn to future-proof your portfolio with AI.
III. Insuring yourself and your loved ones.
How do we keep your insurance cost low? Tham Guo Liang (Insurance Specialist, iFAST Singapore) gives a crash course on your protection needs and necessary policies. Are you paying too much for your insurance? Do you know what policies you purchased and are covered for?
Estate planning for you and me. Bernard Chan (Team Director, Investment Advisory & Estate Planning, iFAST Global Markets) advises on crafting an investment portfolio for the future generation especially given how generational wealth accumulates.
Booth Highlights
Activities: Play Zone, Vote & Spin and Dip & Win
Play Zone: We reminisced the good ol’ days with a set of classic games: Chapteh, Five Stones, Rubik’s cube race, bubble blow and go-fishing. Participants got to Tikam Tikam prizes and had fun with family and friends!
Vote & Spin: Survey-takers stood to test their luck to win attractive prizes including FSM bonus units, Ya Kun vouchers, DFI vouchers, notebooks, power banks, and handphone stands.
Dip & Win: Starbucks cards, Dairy Farm vouchers, and NTUC vouchers were given out to participants.
Lucky Draw: Congratulations to our lucky winners of 10x s$100 FSMOne Cash Account Credits, 4x Apple Watches and 6x iPads!
In sum…
"In preparing for battle I have always found that plans are useless but planning is indispensable", Dwight D. Eisenhower famously said. Indeed, the process of mapping out different scenarios that prepare you to handle whatever comes your way is most vital.
We thank those who have attended FSM Invest Expo 2023 in-person and virtually for your active participation in our activities and sincerely hope that will have a positive impact on your investments. Stay tuned to our page for upcoming investment conferences, events, and exclusive promotions!
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