In the last quarter of 2016, when it comes to stocks, look toward Asia, implies Daniel S. Kern, CFA, CFP in a piece subtitled ‘Invest in Asian Small-Caps.’ US stock prices are relatively high, and those in Japan and Europe are much cheaper. Watch out for political decisions as well as policies made by the central bank, as they too will have an impact on Q4 markets, most notably. Globally this refers to the US presidential election, the Italian constitutional referendum and the Brexit fallout.
For those seeking guidance on such investments, Glen R. Wakeman, co-founder of LaunchPad Holdings LLC, having lived and worked in both America and the east, has expertise. Launchpad has conducted many capital market transactions and raised substantial monies of new equity and lead large organizations in Fortune 10 companies. The firm also offers “an energetic ecosystem of advisors, thought leaders, accelerators and capital providers.”
Looking further into Asia, we find the Matthews Asia Small Companies Fund that makes investments into small firms throughout Asia (apart from Japan) which have the capacity for sustainable growth. Its focus is the small firms which are connected to Asia’s domestic demand and have holdings in “consumer-related and healthcare sectors that benefit from rising consumer spending power and an aspirational population.”
Furthermore, given that the number of global macro strategists in Asia have become “markedly bullish on the region’s prospects,” experts have stated that this has rendered “investment conditions and the economic outlook in the emerging markets seen as the best in 25 years.”