Cathay Securities announced today that it will invest in weather observation stations in December, holding a relatively neutral view on countries such as Europe, America, Japan, and emerging Asia.

(Photo provided by Cathay Financial Holdings)

[Reporter Wu Xintian/Taipei Report] Cathay Securities announced today that it will invest in weather observation stations in December. It has a relatively neutral view on Europe, America, Japan, and emerging Asian countries. Pay attention to short-term investment risks, and long-term investment is expected to emerge opportunities for bargain hunting.

Cathay Securities conducted observations on major global stock markets and commodities in December 2022. Although countries such as Europe, the United States, Japan, and emerging Asia continue to face geopolitics, energy crises, extreme weather, and interest rate hike cycles, on the other hand, the market is also It is expected that the Fed will slow down the pace of interest rate hikes in 2023, boosting the confidence of the investment market. In addition, Europe, the United States, Asia and other countries will usher in a wave of tourism and the festive consumption season in December, which will drive economic growth.

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Therefore, in a period when the market is affected by both good and bad factors, Cathay Securities holds a relatively neutral view on countries such as Europe, America, Japan, and emerging Asia; Emerging Europe, which is in the hot zone of the Russia-Ukraine war, continues to suffer economic recovery, and Cathay Pacific Securities takes a more conservative view.

According to the forecast of the Organization for Economic Cooperation and Development (OECD), the US economic growth rate will drop to about 0.5% in 2023, and the IMF forecast will drop to 1.3%. The slowdown in economic growth will cause the stock and bond markets to continue to fluctuate.

In terms of the stock market, Cathay Pacific Securities recommends that investors pay attention to defensive stocks such as medical care, tourism and utilities.

Among them, medical-related industries benefited from the opening of medical care after the epidemic was unsealed, as well as technology research and development, and the prevalence of smart medical care for the aging society, which is conducive to the overall industrial development; With the characteristics of stable profit and so on, they all show a relatively stable state.

From the perspective of the bond market, the global economic growth will tend to be conservative in 2023, and the financial market is expected to remain volatile. However, as the Fed’s interest rate hike is coming to an end, the bond yield will peak early, and investment opportunities for high investment grade bonds are expected to emerge. Cathay Securities recommends that investors can refer to investment-grade bonds and related targets of government bonds.

On the other hand, when the global economy continues to face various external environmental challenges such as war, energy crisis, post-epidemic and extreme weather, investment risks continue to increase, making companies' sustainable investment performance in ESG more attention.

Therefore, Cathay Securities recommends that investors pay more attention to ESG-related concept stocks and companies' "ESG" strategy layout. During the period of changes in the global political and economic order, better development is expected.

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