The latest value of the "Infrastructure Industry Investment Thermometer" in February reached 52 points, a slight drop of 6 points from the previous month (picture provided by Yongfeng Investment Trust)

 [Reporter Wang Menglun/Taipei Report] Yongfeng Investment Trust announced today a comprehensive evaluation of the "Infrastructure Industry Investment Thermometer" in February.

The latest value in February reached 52 points, a slight decrease of 6 points from the previous month. Yongfeng said that the main reason is that under the recent market rebound, some funds entered the market first when they rallied, resulting in a relative weakening of the momentum of funds and a slight drop in overall investment enthusiasm.

 This "Infrastructure Investment Thermometer" is a comprehensive analysis of industry heat indicators by Yongfeng Investment Trust based on the five aspects of global economic boom trends, infrastructure industry profit prospects, stock market evaluation, capital momentum, and technical indicators. The value ranges from 0 to 100, and then Quantify the market enthusiasm of the infrastructure construction industry.

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 The infrastructure construction industry was favored by legal entities last year, but since the beginning of this year, the stock price growth has been relatively lagging behind.

 Chen Shijie, manager of Wing Fung ESG Global Digital Infrastructure Fund, pointed out that the global stock market has rebounded strongly recently, and some investors tend to be safe when they rallied.

However, in the context of a bearish economy and a slowdown in corporate growth momentum, the infrastructure industry’s fearless economic cycle can help resist economic headwinds. It is expected that after this wave of profit-taking selling pressure eases, funds will have the opportunity to return.

 According to Chen Shijie's analysis, although the enthusiasm for infrastructure investment has cooled slightly under the pressure of market growth, careful observation shows that the evaluation of infrastructure stock prices has raised the profit outlook for the third consecutive month, showing that the fundamentals continue to be strong, which is conducive to stable investment confidence.

In addition, the technical aspects are also beneficial to many parties. The MSCI Global Infrastructure Index recently not only stands on the quarterly and annual lines, but also breaks through the annual line and rises on a monthly basis.

 In response to last week’s Fed raising interest rates by 1 yard as expected, and hinting that the rate hike cycle is coming to an end, Chen Shijie believes that the current inflationary pressure seems to be slowing down, but it is still difficult to break away from the main theme of the global economy this year.

 "According to historical experience, the end of interest rate hikes is often followed by a weak economy." Yongfeng Investment Trust said that the infrastructure industry has rigid demand, and pricing usually has an elastic mechanism to follow inflation and price adjustments, which can support the stock price to be relatively shock-resistant Therefore, if you want to find investment targets under this year's economic headwinds, the infrastructure industry should be a good choice.

 Chen Shijie said that the probability of a soft landing of the economy is still high. As the market's short-term upward pressure is gradually digested and corporate profits continue to improve, there is no small chance that the infrastructure industry will continue to rebound in the future.

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