Yes it is time buy correct types of stocks globally in all types of markets such as frontier, emerging and developed markets after doing home work as there are great opportunities.
If we analyze Sri-Lankan market we can see the type of valuations in some stocks that we cannot see even in bear markets. Globally, we can find value opportunities in consumer stocks specially food related stocks, internet related stocks, telecommunication, transportation and some out of favour stocks categories etc. Even some banking stocks could have some value after recent sell-off globally.
Overall it is not as bad as some others think. Risk sentiments have calm down somewhat now and markets are ready for next move. We are seeing better economic data from the USA as well as some pro-active approach from China as well. Frontier markets such as Sri-Lanka are also gradually establishing in their economic path now. We should see some support for both oil and copper as well while having minor volatility in 2016/17. We can also expect some weakness in USD in the short run while having volatility.
In the local front we are going to see record tourist numbers and bumper grain harvest which include rice (paddy) during first quarter of 2016. Finally government is trying to rely on Chinese investment as well.
CB Chief says China could help push SL’s growth to 7% -