Tips for a roaring tiger year - Fengshui guide

There is a reason why investors approach Tiger years with a touch of apprehension - they often coincide with major crises, such as those in 1974, 1986 and 1998.

But optimistic investors may want to hold a different view, said Mr Ben Fok, chief executive of Grandtag Financial Consultancy.

He said previous Tiger years had been 'excellent' times to bargain hunt for shares.

For instance, the Asian financial crisis caused the Straits Times Index (STI) to crash to a low of 800 points in Sep/Oct 1998.

'This caused properties to plunge to their lowest point in that decade and Singapore was in a severe recession, creating the Singapore big sale for most asset classes,' said Mr Fok.

Here is how some experts see the year ahead:

Mr Terence Wong, co-head of research at DMG Securities
'The market is likely to remain volatile so identifying the right sectors is key. Hospitality is one of the sectors to see good growth with the return of tourism dollars on the back of an improving global economy, as well as the opening of the integrated resorts....

We expect high-end properties... to see a reversal of fortunes this year, as foreigners find their way back to our shores.

Finally, the offshore and marine space should look interesting with oil prices likely to remain high. We expect STI to exceed 3,000 in 12 months.'



Mr Albert Lam, investment director of IPP Financial Advisers
'The market will consolidate within a trading range of between 2,600 and 3,000 in the first half of 2010, on the back of excess liquidity at the sidelines. This gives investors opportunities to buy on dips.

The second half should provide a clearer trend... depending on how much the stimulus packages in the US and Europe have filtered into the main street. That will be reflected in the job market, productivity and economic growth numbers... If the employment rate doesn't improve, consumers will have less confidence to spend and consume, resulting in weak economic growth numbers.'



Mr Vasu Menon, OCBC Bank's vice-president for wealth management
'We expect global economies to continue recovering this year, although at a gradual pace, as unemployment remains high in the developed regions like the US and Europe.

This year, stock markets will find it harder to keep pace with last year's stellar performance.... Investors must be prepared for more modest returns in line with the gradual economic recovery taking place... We are cautiously optimistic about the investment outlook for this year. Stock markets are still inexpensive in terms of price-earnings multiples and the abundance of liquidity should help to support markets and enable them to close the year on a higher note.'



Mr Ben Fok, chief executive of Grandtag Financial Consultancy
'I expect 2010 will prove to be a sector- and stock-picker's year... I expect global markets to start on a slow note and generate steady returns in the first half of the year.

Our favourite bet is Asia and it will likely be the key performer again, not only in terms of stock market strength but also economic resiliency. The latter is very important, as 2009 demonstrated that big emerging economies have the ability and enough financial power to withstand big economic hits. Our recommendation is to overweight Asia.