MARKETS & INVESTING

MARKETS & INVESTING | Staff Reporter, Singapore
Published: 06 Jan 12
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Show Me the Money: Winning investments for 2012

Show Me the Money: Winning investments for 2012

Bank of Singapore handpicks four safe haven options in the bumpy market ahead.

Bond portfolios, dividend-yielding stocks, EM bonds and blue chip stocks are the top investment choices given the increased volatility and attractive yield speads

Bank of Singapore compared these picks and found them more applealing than other viable investment recommendations.

"Portfolio of bonds and dividend yielding stocks superior to holding cash. EM bonds preferred over DM bonds due to relative credit rating upgrades and attractive yield spread," Bank of Singapore said in a release.

"Take advantage of elevated volatility to sell options as a way to accumulate cyclical blue chips. Take advantage of prolonged near-zero USD rates to hedge FX risk and to moderately leverage portfolio of bonds," it added.

Asia ex-Japan equities are a middle-of-the-road option, at least until Europe begins to resolve its mess.

"Among regions, we prefer Asian ex-Japan driven by our constructive view on China, where valuation presents opportunities. Preference for quality large cap names, especially those with a structural domestic story," Bank of Singapore said.

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Tags: Singapore investment, investment recommedations, investment market, bonds

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