4 Strategies to beat the 2017 market!

Are you ready to take on 2017? DBS offers you 4 strategies to beat the market in 2017: Growth, Dividend, US Exposure and M&A.

2017 Outlook

  • ‘Back to growth’. Earnings should bottom out
  • Domestic drivers are positive. Loan growth up. PMI up. Oil price stabilized.
  • But external headwinds (Trump’s anti-trade policies, populist politics, liquidity outflows) may pose some trouble.

Investment Strategies

  • Growth/Recovery: Look for stocks with strong growth or proxy to economic recovery. Stocks: Genting Singapore, Ezion, OCBC, mm2
  • Sustainable yields but avoid REITs due to rising rates. Stock: ComfortDelGro
  • Beneficiaries of US or USD. US is recovering strongly and USD may strengthen relative to SGD. Stocks: Venture (exports to US) and ST Engineering (earns USD).
  • Stocks with M&A catalysts: GLP and Thai Beverage.

Note: This is a summary of DBS Research.