SINGAPORE – Assessing the long-term value of a company will be even more critical given market volatility, but investors should also be prepared to weather the short-term dips, noted an investment expert from HSBC.
Mr Jeffrey Yap, who heads the investments and wealth solutions team for South-east Asia at HSBC Global Private Banking and Wealth, told a forum on Wednesday night that the biggest companies in the future will be those with game-changing solutions and ideas. Such firms will also be subject to uncertain economic conditions that could send their share prices down.
“The negative performance is not because these companies are not changing the world,” he said.
“The company is still doing what it is supposed to do, but the price of the stock comes down. So the key is to look at the changes that are happening around us and invest in those companies long term.”
Moving towards more advanced technology, sustainable infrastructure, and less reliance on fossil fuels are some trends shaping the future, he added.
Other panellists at the hybrid event, which included dinner and wine pairing, said investors should also take steps to protect themselves, with volatile price movements and the uncertain market outlook likely to continue.
Singapore Exchange market strategist Geoff Howie said global inflation is forecast at between 6 per cent and 7 per cent next year, so markets will be watching the movements of the United States Federal Reserve closely.
Investors may want to consider a more diversified portfolio, he added.
With all that uncertainty, it pays for an investor to put in extra effort and do proper research, said Straits Times Invest editor Tan Ooi Boon.
“You need to keep up with the news because these days we live in uncertain times. No one knows for sure where the market is heading, but you stand to gain from being an informed investor,” he said.
Organised by The Straits Times and presented by HSBC, the Market Outlook 2023 event was held at the Andaz Singapore hotel.
There were about 200 attendees, including HSBC customers and ST subscribers and readers, as well as HSBC regional clients who dialled in.
The panel discussion was moderated by ST associate editor Lee Su Shyan.
