SINGAPORE (Dec 14): By mid-2018, it was shaping up to be the most volatile year for global markets since 2008.
Company share prices have fluctuated in the wake of news flow that was not even strictly corporate; geopolitical-risk events have prompted investors to reassess the value of their holdings.
On the other hand, corporate events have also turned political: Huawei Technologies’ expansion plans are apparently not sitting well with Western governments, and there seem to have been tit-for-tat arrests between China and Canada.
The arrest of Huawei chief financial officer Meng Wanzhou has wider implications.
The world’s high-tech industry is inextricably connected in a global supply chain; any disruption at one link would have far-reaching repercussions.
This was amply illustrated as the trade war between the US and China ratcheted up over the last six months; US companies were rushing to stock up or find an alternative for a myriad of Chinese products — from engine components to power tools and squid.
Can investors benefit from riding the disruption, and make investments that will hold their value amid market volatility? And, how does focusing on short-term gains come at the expense of the longer-term benefits?
Login to read more in Disruption is the impetus for inclusion, which appears in this week’s issue of The Edge Singapore (#861, week of Dec 17), or grab a copy at newsstands today.
