Are Old Economy Stocks Back In Favour?

Are Old Economy Stocks Back In Favour?

Tech stocks have been on the selldown for weeks across different markets. From Tesla, Alibaba to Tencent and Meituan, none of these stocks were spared as most were down by at least 20% from the highs in the beginning of this year. This has caused the global economy to be stirred up.

However, there has been a resurgence in the old economy. For example, banks stocks like JP Morgan, Hang Seng Bank, DBS and HSBC have seeing a strong uptrend of more than 10% over the same time period. For example, the MSCI China banks index has outperformed the MSCI China index by 25%-pts over the last two months, slowly but surely boosting older economy and markets.


What are these trends telling us? What conclusions can we draw? What are the key things investors should be looking for?

As global vaccines are being rolled out, the possibility of a speedy recovery of the global economy and life returning to ‘normal’ increased. This has stirred up interest in the long-ignored value stocks. Hence, investments have started to rotate from the new economy to the old economy.
Get deep insights on what exactly is happening to the markets right now from two of our distinguished guest speakers. Chi-man Wong is the Head of Research at China Galaxy International (CGI). He focuses on strategy research and covers the building materials and brokerage sectors. Industry Experience: He has 18 years of experience in the equity research industry. Prior to joining CGI in 2012, he worked as an analyst in both Chinese and foreign investment banks, including Phillip Securities, Everbright Securities, and Piper Jaffray Asia.

Adrian Chew is the Vice President, Sales and Product Strategy (S.E.A) at CSOP. At CSOP Asset Management, Adrian oversees ETF investment solutions for Brokers, Wealth Managers, and Family Offices in Singapore. Adrian is also part of a team responsible for developing sales strategy and strategic partnerships with institutions in South East Asia. Prior to joining CSOP Asset Management, he worked for RHB Asset Management where he was a Business Development Manager for mass and affluent Investors, Wealth Managers, and Intermediaries.

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