In celebration of Cap Go Meh, Bank DBS Indonesia informs 60/40 investment strategy for the Year of the Water Rabbit | Bahasa
Indonesia.06 Feb 2023.3 min read
Portfolio strategy tips from DBS Smart Talk series “Spring Festival 2023: Prosper Ahead of Global Dynamics”
Indonesia, 06 Feb 2023 - The dynamic global economy, a potential recession, rising interest rates, developments in the energy sector and geopolitical conditions are expected to affect Indonesia’s economy in 2023. Against this background and to take full advantage of the Chinese New Year momentum, Bank DBS Indonesia together with investment management companies (PT Manulife Aset Manajemen Indonesia, PT Schroder Investment Indonesia, PT Bahana TCW Investment and PT Batavia Prosperindo Aset Manajemen) held a series of DBS Spring Festival events in Jakarta (26 January 2023), Surabaya (27 January 2023), Bandung (31 January 2023) and Medan (3 February 2023) for priority banking and private banking customers. The speakers discussed investment strategies, prospective industries, and important factors that need to be considered when investing and doing business in the Year of the Water Rabbit. These insights were provided based on artificial intelligence (AI) analytics covering two areas, namely data on the latest market development and customer modeling. The topics presented at each event were personalized to make them relevant to and suitable for the risk profile and aspirations of each customer.
“We hope the Year of the Water Rabbit brings more prosperity, success and luck. The presentation of these investment insights at DBS Spring Festival 2023 has strengthened Bank DBS Indonesia's vision as a wealth management partner that provides services that are not only able to meet customer needs according to preferences, but are also able to anticipate future challenges and needs. We are ready to support customers in managing and optimizing their wealth so that they are confident and always at the forefront of taking opportunities, including utilizing the easy-to-use and user-friendly digibank by DBS application for investing, anywhere and anytime, so that customers can 'Live More, Bank Less',” said Director of Consumer Banking, PT Bank DBS Indonesia Rudy Tandjung.
On the same occasion, Feng Shui Consulting Indonesia Senior Consultant Angelina Fang explained, “The Year of the Water Rabbit is described as grass that wants to grow but is hindered by a fog. Therefore, people should be flexible and wise in making investment decisions. A 70/30 investment strategy can be an option: 70% of assets invested in low-risk products, such as bonds, precious metals, deposits, and property, and another 30% in moderate-risk products such as mutual funds, stocks, and others. Customers can also start investing in the automotive, electronics, heavy equipment, fintech, gold and jewelry, and telecommunications industries because these industries are expected to thrive in 2023. Customers should avoid the textile, health, plantation, and forestry sectors to minimize the risk of loss this year.”
Supported by DBS Group Ltd (DBS)’s strong ASEAN connectivity, at the start of 2023, DBS released the report DBS CIO Insights 1Q23: The Return of the 60/40 Portfolio. The report notes that the labor market is strengthening while an absence of systemic imbalances in the US indicates that if there is a recession in 2023, it will be mild. Meanwhile, Consumer Price Index (CPI) data and the statements issued by the US Federal Reserve point to policy easing with a reversal of yields for six months to one year. With the growing threat of recession while inflation remains high, bonds are projected to be more profitable than equities. This is because bonds have historically performed better in high inflation/low growth conditions and there is currently a sizable gap between bond-equity yields.
FX Strategist - Treasury & Market, DBS Bank Terence Wu said, "The US dollar has passed its peak with expectations of more moderate movements in 2023. Meanwhile, Asian currencies are likely to record a more positive performance than developed market currencies this year. The rupiah is expected to appreciate after a period of poor performance in Q4 2022, with room for improvement.”
Bank DBS Indonesia offers wealth management strategies tailored for each individual through Smart Insights in the form of opportunity notifications supported by data-driven artificial intelligence, and delivered at the right time. Customers can easily follow the latest insights and invest directly through the means of their preferences.
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named as “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 14 consecutive years from 2009 to 2022.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting social enterprises: businesses with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping communities with future-ready skills and building food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.
“We hope the Year of the Water Rabbit brings more prosperity, success and luck. The presentation of these investment insights at DBS Spring Festival 2023 has strengthened Bank DBS Indonesia's vision as a wealth management partner that provides services that are not only able to meet customer needs according to preferences, but are also able to anticipate future challenges and needs. We are ready to support customers in managing and optimizing their wealth so that they are confident and always at the forefront of taking opportunities, including utilizing the easy-to-use and user-friendly digibank by DBS application for investing, anywhere and anytime, so that customers can 'Live More, Bank Less',” said Director of Consumer Banking, PT Bank DBS Indonesia Rudy Tandjung.
On the same occasion, Feng Shui Consulting Indonesia Senior Consultant Angelina Fang explained, “The Year of the Water Rabbit is described as grass that wants to grow but is hindered by a fog. Therefore, people should be flexible and wise in making investment decisions. A 70/30 investment strategy can be an option: 70% of assets invested in low-risk products, such as bonds, precious metals, deposits, and property, and another 30% in moderate-risk products such as mutual funds, stocks, and others. Customers can also start investing in the automotive, electronics, heavy equipment, fintech, gold and jewelry, and telecommunications industries because these industries are expected to thrive in 2023. Customers should avoid the textile, health, plantation, and forestry sectors to minimize the risk of loss this year.”
Supported by DBS Group Ltd (DBS)’s strong ASEAN connectivity, at the start of 2023, DBS released the report DBS CIO Insights 1Q23: The Return of the 60/40 Portfolio. The report notes that the labor market is strengthening while an absence of systemic imbalances in the US indicates that if there is a recession in 2023, it will be mild. Meanwhile, Consumer Price Index (CPI) data and the statements issued by the US Federal Reserve point to policy easing with a reversal of yields for six months to one year. With the growing threat of recession while inflation remains high, bonds are projected to be more profitable than equities. This is because bonds have historically performed better in high inflation/low growth conditions and there is currently a sizable gap between bond-equity yields.
FX Strategist - Treasury & Market, DBS Bank Terence Wu said, "The US dollar has passed its peak with expectations of more moderate movements in 2023. Meanwhile, Asian currencies are likely to record a more positive performance than developed market currencies this year. The rupiah is expected to appreciate after a period of poor performance in Q4 2022, with room for improvement.”
Bank DBS Indonesia offers wealth management strategies tailored for each individual through Smart Insights in the form of opportunity notifications supported by data-driven artificial intelligence, and delivered at the right time. Customers can easily follow the latest insights and invest directly through the means of their preferences.
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named as “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 14 consecutive years from 2009 to 2022.
DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting social enterprises: businesses with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping communities with future-ready skills and building food resilience.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit www.dbs.com.