Identifying Potential Opportunities in 2 US Sectors for 2019 January 3, 2019 1232

Many stock markets have been battered and bruised during 2018’s bloodbath, with a market correction occurring during Q4. Market Correction is defined as a reverse movement of more than 10% from the peak. This happened on the back of global trade war fears and worries that the market has reached the end of its bull run. Based on the overall sector performance during 2018, we have identified 2 potential sectors with investment opportunities that investors can explore, namely the Metals & Mining sector and the Automobile sector.

Before proceeding with the overview of the sectors, here is a recap of the key events that has happened in 2018.

  1. Escalation of US-China trade dispute
  2. US midterm elections which saw the Democratic Party winning control of the House of Representatives and made gains at the state level while the Republican Party expanded its majority in the Senate.
  3. The Fed has raised the Fed Fund Rates a total of 4 times in 2018.
  4. Crude Oil experienced a heavy decline in Q4 2018 due to the global supply glut, potentially slowing global growth and dampening outlook.
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About the author

Ming Jun Chuang
Equity Dealer
Global Markets Team

Ming Jun graduated from RMIT with a Bachelor’s Degree in Business Management. He joined Phillip Securities in 2016 as an Equity Dealer and is currently with the Global Markets Team, specialising in the UK and Europe markets as well as supporting the US and Canada markets. He has provided regular market commentaries across various media channels such as Morning Express Channel 8, 95.8FM Live Radio, 联合早报.

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