May golden buying opportunity for Japan stocks is near? Investors looking to up their exposure to Japanese equities may be in luck, with the market approaching attractive levels, according to equity strategists.

Source: The Standard Finance

All three of latest China’s data for January-February – fixed asset investment, retail sales and plant output – released yesterday were poorer than expected.

The data confirm the decline in economic growth. Banks may be told they can keep less reserves. But this will not boost lending as several key sectors – steel, cement, and coal – suffer from too much capacity.

The Hang Seng Index closed at 21,756, down 145 points, yesterday.

If most of the monthly contributions to your provident fund is plowed into local stocks, then, for the last 12-months you are in the red.

But it may not be the right time to switch to Japanese and US equities.

Bonds are safe but falling bond prices in the past one year may have eaten up most of your coupon interest.

Conservative funds that mainly invest in certificate of deposits of banks can preserve your capital but have little or no growth.

Perhaps guaranteed portfolio should be the place to park your monthly contributions.

From here you can normally get around 1 to 2 percent a year from high quality bonds and bank time deposits.

Then, wait for a bigger correction to switch back to Hong Kong stocks.

Dr Check and/or The Standard bear no responsibility for any decision made based on this column.

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