- We believe investors should focus on stock selection and pick companies that would benefit from a rise in tourist arrivals and resilient consumer spending, while remaining anchored to higher quality companies or REITs that offer defensive earnings and/or dividend growth.
- Our investment themes include:
- - Read this at SGinvestors.io -
- buying into companies that will benefit from the return of Chinese tourists;
- retaining exposure to quality companies offering defensive earnings; and
- buying into small and mid-cap companies with strong growth.
Rotation into REITs will be time sensitive, industrial REITs still preferred
- While we maintain that REITs as a sector could outperform amid expectation of the US interest rate cycle potentially peaking in the latter part of 2023, the clarity on the interest rate outlook will be determined by how economic events unfold over the course of the next few months.
- - Read this at SGinvestors.io -
- We expect the industrial REIT demand to remain strong, mitigating supply concerns. Industrial rental rates should to continue to rise, while occupancy is expected to remain relatively flat. The sector remains a defensive safe haven, and one that offers earnings stability and stable asset values amidst ongoing interest rate hikes.
- Read more at SGinvestors.io.
Shekhar Jaiswal RHB Securities Research | https://www.rhbgroup.com/ 2023-07-20
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