Investors should not be intimidated by a flighty start to a trade year and opportunities in Asia wait those who are “brave,” a strategist pronounced Friday.
Global markets have taken a violence so distant this year, even yet 2019 has only begun. Uncertainties from final year, such as a U.S.-China trade war, are assembly new hurdles such as iPhone builder Apple’s sales warning.
“For a brave, now would be a good time to be looking during some of these markets,” Stefan Hofer, arch investment strategist during LGT Bank in Hong Kong, told CNBC’s “Squawk Box” on Friday.
“I consider if we do have a trade understanding with China, let’s contend by a center of 2019, afterwards Asia will be a place to be in terms of equities.”
Hofer suggested that skinny liquidity and trade volumes during a opening week might be exacerbating a severe marketplace conditions, and urged investors to be prepared for probable good news.
“I consider if we do have a trade understanding with China, let’s contend by a center of 2019, afterwards Asia will be a place to be in terms of equities since that has been a vital overhang that has been a problem for Asian markets,” he said.
Hofer sees event in Hong Kong’s smashed market, that he described as a “great place to start” for those peaceful to position themselves in a segment for probable improved times.
Hong Kong’s benchmark Hang Seng Index is entrance off a misfortune annual opening in 7 years, finishing 2018 down 13.6 percent. It fell another 3 percent in a initial dual trade days of this year as tellurian markets tanked.
Shares in a semi-autonomous Chinese segment are supportive to movements on mainland exchanges, that also fell neatly final year.
The U.S.-China tariff fight has also dampened financier view in Hong Kong as a economy relies heavily on trade.
Kevin Leung, executive executive for investment plan and resources government during Haitong International Securities in Hong Kong, also pronounced a internal batch marketplace could offer opportunities.
Speaking on CNBC’s “Street Signs,” Leung described himself as “cautiously optimistic” on Hong Kong, citing nearby “historical low” valuations.
The initial quarter, however, is expected to sojourn flighty as geopolitical issues such as a trade brawl and Brexit play out, he warned.
LGT’s Hofer cautioned opposite holding a desperate opinion for a whole year since of a scattered beginning.
“We tend to do that,” he said. “It’s really natural, everybody does it. But honestly, let’s be a small bit brave.”
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