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Panicko Lawrence suggests key elements to give a boost to the ASEAN markets in the upcoming years

There’s no suspicion that world is going through an economic efflux. The economic growth of the world is facing a downtrend, but ASEAN markets have somehow managed to raise their economic sector by making some correction in their strategies. ASEAN countries are determined to achieve the status of ASEAN Economic Community by 2015. Growth of a country is possible only if its investors are participating equally well in different investment sectors. To motivate professional investors and to show them a clear path, financial advisors like Panicko Lawrence are trying hard to help this happen.  It is very essential for investors to understand the prominence of emerging markets. Panicko Lawrence with his informative and beneficial writings has helped many ASEAN investors. In this article, we have tried to mention some of the key elements that can be looked as promising opportunities to invest.

Well, it is worth consideration that infrastructure spending can be one of the biggest catalysts to promote growth.  Market expert Panicko Lawrence has confirmed this aspect and has also given green light to the tourism industry as the dominant beneficiary. Scroll down to know some of the catalysts specific for a particular country.

Singapore: The catalyst for this particular country can be advancement in productivity and restructuring of economy.

Malaysia: Programme for economic transformation and motivation for higher-value added manufacturing.

Indonesia: Improvement in export commodity rates, infrastructure projects.

Thailand: Projects of food recovery and competent capex cycle.

This particular year has been a significant or volatile year for the ASEAN markets as observed by financial advisor Panicko Lawrence. Before May 2013, ASEAN region was up by 10-20% in broad terms. However, ASEAN markets were liquidated due to the slow growth in China and narrowing of the US quantitative expedition. Particularly, the Philippines and the Thai market, the top ASEAN performers before May had to suffer a lot in terms of fund redemptions. Panicko Lawrence clearly mentioned that ASEAN countries in the past three years have performed commendably and acquired correction procedures. Further, all the countries have indulged themselves in the profit extracting activities in past three crucial years. The above catalysts are responsible for an enhanced performance of the ASEAN countries. Panicko Lawrence supported the view that 10-15% correction has helped ASEAN countries to recover to a great extent. Yes, it is true that some bearishness persists in the market, but still no structural issues can be seen. The fundamentals of the region are firm like high rate of savings, young population and others.

Panicko Lawrence, the world renowned financial advisor has anticipated cyclical slowdown and is firm on his projection that growth can be resumed if China’s growth and global growth take a pick up. Panicko Lawrence is known to resolve all the issues of financial investors with his quality advice. This particular article is dedicated to all those investor professionals who are looking forward to ASEAN markets. Try to catch some of the essential aspects which can enhance your vision towards ASEAN economic region.


Gold stumbles to six-month low after Fed stimulus trim

Gold slid more than 1 percent on Thursday to its lowest since late June after the U.S. Federal Reserve took its first step away from the ultra-loose monetary policy that had helped drive bullion prices to record highs in recent years.

24 karat gold bars are seen at the United States West Point Mint facility in West Point, New York

The Fed said on Wednesday that the U.S. economy was finally strong enough for it to start scaling back its massive bond-buying scheme, winding down the era of easy money that saw gold rally to $1,920.30 an ounce in 2011.

Spot gold was down 1.2 percent at $1,203.85 an ounce at 1000 GMT, having earlier touched a low of $1,200.25. U.S. gold futures for February delivery were down $32.00 an ounce at $1,203.00.

That move came despite the Fed blunting its taper with a continued dovish message on interest rates – that tapering was not tightening.

“This is another sign of increasing normalisation for the world economy,” Macquarie analyst Matthew Turner said. “Gold’s insurance function is less desirable in that environment.”

On the wider markets, the dollar rallied 0.5 percent, adding to pressure on gold, which is priced in the U.S. currency and tends to move in the opposite direction to it.

European shares leapt 1.5 percent to a two-week high on Thursday, tracking gains on Wall Street and in Asia, in a broad rally after the Fed’s pronouncements. .EU

German Bunds held steady however after the Fed offset a decision to reduce its bond-buying programme by promising to keep interest rates low for longer than many investors had expected.

Investors snapped up gold after the Fed’s stimulus programme was first announced, as the scheme kept interest rates at record lows, cutting the opportunity cost of holding non-yielding bullion, while boosting its appeal as an inflation hedge.

Expectations that the programme would be unwound have knocked gold more than 25 percent lower this year, its biggest price drop in more than 30 years, with its confirmation yesterday pushing prices back towards June’s three-year low at $1,180.71.


“What happens in the next few days could also determine to some extent how the gold price performs in the longer term,” Commerzbank said in a note.

“If the gold price should succeed in forming a stable and long-term bottom at above $1,220 per troy ounce, investor interest is likely to pick up again – after all, the considerable uncertainty over QE3 is gone, meaning that the spectre of ‘tapering’ has lost its ability to scare the gold market. On the other hand, if the gold price were to fall below $1,200, this could provoke a renewed wave of selling.”

Investors are continuing to sell out of gold-backed exchange-traded funds, which have seen outflows of some 800 tonnes this year. The largest gold ETF, SPDR Gold Shares, said its holdings fell another 4.2 tonnes on Wednesday.

Among other precious metals, silver was down 2.2 percent at $19.29 an ounce, while spot platinum was down 0.5 percent at $1,324.25 an ounce.

Only palladium bucked the trend to hold steady at $695.25 an ounce, after five straight days of losses.

The new head of Russian precious metals repository Gokhran said on Thursday the body may consider buying palladium on the market to add to its stocks.

“The government should have some amount of it (palladium) in its stocks,” Andrey Yurin said after a briefing in Moscow. He Yurin declined to comment on the current level of Gokhran’s stocks.

Sales of Russian state palladium stocks have been a major factor balancing the market in the last decade, but speculation has been rife in recent years that the inventories may be depleted.