* In Part 1 we talk about opportunities and threats, 8 key factors that affect the stock market and 4 key risks. In this article, we will be discussing the strategies to maximize returns, going deeper into which sectors to focus on and the most significant opportunities in 2023.
6 key strategies to maximize returns
It is expected that in the first half of 2023, the central banks of various countries will stop raising interest rates, which should provide some relief for the stock markets. This, combined with increased optimism about the global economic outlook, is expected to improve market sentiment and help to bring an end to the bear market that has persisted for the past year and a half. The stock markets are expected to start to rebound, with investors looking to take advantage of attractive valuations and increasing risk appetite.
The Malaysian stock market has been volatile in recent years. With the prediction that the market may return to the level of 1,600 points this year, now it is time for investors to enter the market to reap the benefit when the market reaches 1,600 points.
Investment decisions should be made with careful consideration of current trends and market conditions. With China’s borders reopening, the tourism industry in Malaysia is likely to experience a significant increase in demand. Currently, the average annual number of tourists in Malaysia is about 1 million.
With the opening of China’s borders, the number of tourists is predicted to increase to around 3 million. This could lead to a surge in tourism-related stocks as investors look to capitalize on the expected increase in tourism.
It is true that the Russia-Ukraine conflict is far from over and that the energy crisis continues to affect global markets. As a result, the price of oil is likely to remain high in the coming years, making it a viable investment option for oil-exporting countries. Investing in oil and gas stocks can be a risky venture, however, as the volatile nature of the market can lead to large swings in prices.
This year, many countries are launching 5G telecommunications services, including Malaysia. Investing in 5G-related stocks can be a lucrative option for investors, as 5G technology is expected to revolutionize the telecommunications industry.
With Tesla’s impressive financial performance and the increasing focus on carbon reduction policies by governments around the world, new energy vehicles have been receiving more and more subsidies, making them a more attractive investment option. This has caused large international funds to focus more on semiconductor manufacturers, LED manufacturers, and new energy-related stocks that are related to new energy vehicles.
7 most promising sectors in 2023
The most promising sectors for 2023 are likely to be those related to technology, communication, consumer staples, utilities, energy, finance and travel. These sectors are expected to experience strong growth over the next few years as governments and businesses invest in new and innovative technologies.
Additionally, sectors related to e-commerce, online gaming, and online entertainment are also likely to do well, as the pandemic has encouraged more people to shop online and access online services. It is important to keep an eye on the current global economic and political landscape, as developments in these areas may affect the performance of stocks in these sectors.
3 most significant opportunities in 2023 you can’t miss
Southeast Asia will be the beneficiary of the trade diversion effect under the Sino-US trade war, especially Malaysia, Indonesia, and Vietnam. The stocks that benefit from this opportunity are VS, INARI and PENTAMASTER.
With the technological revolution, server manufacturing industry players such as cloud servers, data centres or information, security management and cybersecurity stocks have gained lots of attention. For example, LGMS, SNS and TM.
Many companies pay more attention to Go Green investment. Companies that focus on developing new energy vehicles and solar power projects will continue to be investor favourites. The stock that benefits from ESG initiatives are GENETEC, CFM, D&O, SLVEST and CYPARK.
*This was taken during a virtual interview with Sifu Jackal Cheng, Stock Investment Coach and also the founder of Sifu Saham Academy.
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