Morgan Asset Management plucks defensive shares

Sino-US trade war has not eased, and Morgan Asset Management advises investors to deploy well, including diversifying investment and investing in defensive stocks to cope with the changing situation.

Survey means investor confidence is picking up

The bank released the latest “Morgan Investor Confidence Index” survey yesterday. The survey was conducted in April this year. The results showed that the index rebounded from the 88-point low in the fourth quarter of 2018 to 114 points, which is in a positive range. All sub-indices were better than those at the end of 2018. The Hang Seng Index sub-index (measured by investors’ confidence in the Hang Seng Index) rose the most, from 86 points to 126 points. 41% of investors believe that the HSI is expected to be in the future. It broke through 30,000 points in 6 months, a sharp jump from 0% in October last year.

Tang Zhiheng, vice president of Morgan Asset Management’s retail distribution business, said that the recent Sino-US trade war has deteriorated, and the two sides have imposed tariffs on each other. It is not excluded that investor confidence will begin to decline. He believes that Hong Kong is at the end of the economic cycle and the macro economy is uncertain, but it will not be bearish on the market conditions in the second half of the year.

Diversified investment to buy non-traditional bonds

Tang Zhiheng suggested that investors should be prepared, investment strategies should be diversified, and try to buy some non-traditional bonds, such as infrastructure, real estate, private placement bonds, or join US government bonds and high-yield stocks.

Zhou Hao, global market strategist at Morgan Asset Management, said investors should balance their investment structure and pay more attention to defensive stocks such as “national policy stocks”, infrastructure stocks and consumer goods stocks.

Tang Zhiheng pointed out that the investor confidence index for each quarter was affected by the events that occurred at that time, most obviously the fourth quarter of last year, which was affected by the trade war and fell to a 10-year low of 88 points. It can be seen from the data that Hong Kong investors are easily affected by the news, but the news in the first quarter of this year is still positive, and the PBOC’s measures to promote growth have rev