Asia the Next Place to Invest, According to HSBC Chief Investment Strategist

HSBC Private Bank chief investment strategist Jose Rasco recently discussed his views on the market with Sara Silverstein of Business Insider. His outlook on U.S. equities was positive, but he believes that investment in Asia is most likely to yield results this year.

The U.S. is certainly strong, he said. “We think that given the strength in earnings and the strength in GDP and the stability of inflation, and the Fed moving slowly, we think that the US is a good place to be,” he explained, “but if you want to invest in an area where you’re going to see growth, and that’s one of the reasons to invest in equities right, is we want to be in Asia. We see growth there in excess of 6% in China, 6.5-7% in China, in excess of 7% in India, positive demographics in India, and a great deal of spending on an infrastructure and technology so those are very positive drivers for us.”

Rasco indicated that infrastructure is particularly promising, especially in China. He explained that as countries throughout Asia become more digital, more opportunities arise to create jobs and meet new market demand. “In addition, you’re seeing in China the same thing,” he said, “a great deal of spending on infrastructure, the One Belt One Road for example, which is a massive infrastructure project — trillions of dollars a year for the next ten years, and they are building roads, essentially think of Marco Polo on a bullet train, and that’s what we’re seeing. We’re seeing the time of goods to market is being reduced dramatically by this project. Think of years ago, if you had been alive when the Chinese were building the Great Wall, would you not want to invest in the timber and cement companies that were making it? That’s what we’re in the middle of right now. So we like China for that infrastructure, because don’t forget when you invest in infrastructure, you create jobs, wealth, and you keep inflation under control.”

Intel Capital Invests in 10 Asian Companies

Intel Capital recently announced its $40 million worth of investments in ten Asian companies. The investments include eight in companies from China, India, Japan and South Korea, as well as two planned in Taiwan.

“Technology adoption and innovation is an accelerating global phenomenon, and Asian entrepreneurs from both mature and emerging markets are on the cutting edge of this trend,” said Intel Capital president Arvind Sodhani. “These ten companies offer unique technology- from remote security solutions to interactive cloud-based services- that enhances productivity, security and the online experience for consumers and businesses around the world.”

The investments were announced at the 12th annual Intel Capital Global Summit in Huntington Beach, California. The summit, formerly known as the CEO Summit, hosts more than 900 portfolio company CEOs each year, as well as corporate technology decision makers and industry leaders from across the globe.