While it is still hard to tell when the market will stabilize, speculative investments in real estate, banking, and even telecommunication sectors are not advisable these days.
This according to Abacus Securities vice president and director for Abacus Securities Jack Huang saying this is not a good time to gamble on these industries while there are a lot of interventions that are coming in including United States recession and inflationary threat, among others.
“Speculative investments make no sense these days. If you buy a real estate property for consumption or use—it is fine. But if you buy for investment purposes or speculate—no way,” Huang said.
He said there is too much supply in real estate products coming in the market, there is a possibility that value of these products may not improve in the next few years.
However, he said investors may be safe if they buy high-end real estate products now, but not good for them to invest on the low to medium real estate category, if only they buy for investments, not for personal use.
Huang added that mass housing, or the low to medium housing developers may also be prepared for take-up performance to decline, as their main market that are the dollar-earners are also having financial difficulties.
“Chances are OFWs [especially those employed in US] will not get [salary] increases, they are even lucky if they remain with their jobs,” Huang said.
Banking investments in the stock market today, is not also too hot, this sector is also slapped by inflationary threat that is seen to bring about sluggish banking performance this year.
Investing into banking institutions may not be good as of now, as consumers tend to adjust their budget, bigger chunk will go to the basic necessity, such as food, transportation, and others.