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12-01-2011, 07:51 AM
Don't you just love it when these proclaimations are so confidently published in our newspapers? 
Jan 12, 2011
'No bear market in sight for equities'
By Gabriel Chen
THE new chief investment officer of DBS Bank's wealth management business, Mr Lim Say Boon, believes that the equities bull market that started in early 2009, after the global financial crisis abated, will continue this year.
Mr Lim's optimism comes amid growing concerns by some market watchers that Europe's debt crisis could throw global stock markets into a tailspin.
This week, markets have performed sluggishly on the back of fresh speculation that Portugal, and perhaps even Spain, might need a bailout.
Mr Lim urged investors to stay put in stocks this year and not to take flight - because he believes there is no bear market in sight. He was speaking to the media yesterday in his first investment outlook briefing since joining DBS from Standard Chartered Bank last October.
However, Mr Lim said investors should not buy all stocks equally. He noted that in the current quarter, DBS is 'underweight' on European and Japanese stocks. Stocks in Asia excluding Japan were still a good bet, but investors should be buying on pullbacks for superior fundamentals.
'Conditions are not frothy enough yet to signal the final stages of the bull market. We don't have a problem with overvaluations. Stocks globally are not expensive,' he said.
'Asia ex-Japan stock valuations are higher, but they are mid-cycle at worst and no way at late stage.'
Mr Lim likes what he sees about Asia ex-Japan because compared with developed nations, the region has stronger government and external balances, more resilient banking systems, larger foreign exchange reserves, and strong consumption and infrastructure investment growth.
DBS Vickers Secuirites' head of research, Mr Timothy Wong, concurred at the briefing yesterday that Asia's growth would still be faster than average. 'The smaller countries - everyone except China, India, Indonesia - are returning to 'normal' after five to six quarters of double-digit growth.'
In fact, Asia's larger, more domestically driven economies such as China, India and Indonesia are seeing growth acceleration. 'Don't be fooled by the 'Asia is slowing' signs. Growth will still be above average in 2011,' Mr Wong said. 'Smaller countries will converge from above average rate and larger countries will converge from below average rate.'
Mr Wong recommended that investors look at Singapore-listed stocks such as vegetable food producer China Minzhong, Chinese shipbuilder Cosco, and Midas Holdings, the maker of aluminium alloy profiles used in train carriages.
Jan 12, 2011
'No bear market in sight for equities'
By Gabriel Chen
THE new chief investment officer of DBS Bank's wealth management business, Mr Lim Say Boon, believes that the equities bull market that started in early 2009, after the global financial crisis abated, will continue this year.
Mr Lim's optimism comes amid growing concerns by some market watchers that Europe's debt crisis could throw global stock markets into a tailspin.
This week, markets have performed sluggishly on the back of fresh speculation that Portugal, and perhaps even Spain, might need a bailout.
Mr Lim urged investors to stay put in stocks this year and not to take flight - because he believes there is no bear market in sight. He was speaking to the media yesterday in his first investment outlook briefing since joining DBS from Standard Chartered Bank last October.
However, Mr Lim said investors should not buy all stocks equally. He noted that in the current quarter, DBS is 'underweight' on European and Japanese stocks. Stocks in Asia excluding Japan were still a good bet, but investors should be buying on pullbacks for superior fundamentals.
'Conditions are not frothy enough yet to signal the final stages of the bull market. We don't have a problem with overvaluations. Stocks globally are not expensive,' he said.
'Asia ex-Japan stock valuations are higher, but they are mid-cycle at worst and no way at late stage.'
Mr Lim likes what he sees about Asia ex-Japan because compared with developed nations, the region has stronger government and external balances, more resilient banking systems, larger foreign exchange reserves, and strong consumption and infrastructure investment growth.
DBS Vickers Secuirites' head of research, Mr Timothy Wong, concurred at the briefing yesterday that Asia's growth would still be faster than average. 'The smaller countries - everyone except China, India, Indonesia - are returning to 'normal' after five to six quarters of double-digit growth.'
In fact, Asia's larger, more domestically driven economies such as China, India and Indonesia are seeing growth acceleration. 'Don't be fooled by the 'Asia is slowing' signs. Growth will still be above average in 2011,' Mr Wong said. 'Smaller countries will converge from above average rate and larger countries will converge from below average rate.'
Mr Wong recommended that investors look at Singapore-listed stocks such as vegetable food producer China Minzhong, Chinese shipbuilder Cosco, and Midas Holdings, the maker of aluminium alloy profiles used in train carriages.
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