2017 OUTLOOK & STRATEGY
Our performance in 2016 is something worth to celebrate, but we don’t want drowning in euphoria and forget that 2017 is already here and we have to start everything from 0 again.
Here is the summary of our investment thesis in 2017
- Commodities price will continue its bullish trend on the back of rising inflation in almost all countries and China supply cut.
- USD Index will weaken as inflation creeping higher across the world, including US itself
- Crude Oil price has high possibility to rise to USD 60 / barel as OPEC cut supply
- President Jokowi will speed up its infrastructure project as we are getting closer to election year in mid 2019
- There is a possibility for government to raise fuel price if crude oil price keep accelerate
- Bank Indonesia has limited room to cut the rate from current level
With all investment thesis above, we will maintain our overweight position on Commodities stocks and start buying Construction stocks.
Last but not least, reading “The Story of Pencil” by Paulo Coelho remind me about my childhood. When a teacher asked me to draw a scenery, I always draw my favourite scenery which is a hill with 3 birds, and the sun. This picture above went viral a few years ago, you can see how the birds formed a smile formation, what makes it more beautiful is the smiling sun far behind the birds.
We all hope that 2017 is gonna be a happy year too for Sucorinvest Asset Management and of course, for all of you.
Thanks for all your trust throughout 2016, SUCORINVEST – MAKING DREAM POSSIBLE !