iShares MSCI Singapore ETF [EWS] Stock Forecast

The world economy may have fallen into conditions that were seen during the 1997 Asian Financial Crisis, but this time around Asian countries better-positioned financially.

Non-China Asian exports are still growing, but the pace of increase has slowed and will slow still further as key export destinations struggle with inflation, energy security, and rising recession risks. In year-on-year terms, the rate of overall export growth is now skirting single-digits again.

BlackRock's iShares MSCI Singapore ETF has come down 7% since my call to hold. A mismatch in yield between 70% of their holdings' actual dividend and what EWS offers is worth investigating.

Singapore stocks are treated as a "safe haven" amidst the uncertain global outlook. The prominence of value-oriented industries such as Financials and Real Estate comprising the STI makes for an index that's defensive in nature.

Singapore looks well-positioned to benefit from the loosening of China's lockdown restrictions. The cost of living in Singapore may be high but wage growth levels are compelling as well.

BlackRock's iShares MSCI Singapore ETF holds a small portfolio of mostly blue chip companies. As with all market weighted ETFs, it will include companies which are neither profitable nor attractive in my opinion.

iShares MSCI Indonesia ETF: Fairly Valued

Asia is my favorite investment ground within the emerging markets. But there are as many different nuances within Asia as there are in Americas. Which one to choose?

EWS invests in Singaporean equities. Unfortunately, while Singapore is a developed economy, its equity market is not nearly as developed as the U.S. equity market.

The ASEAN region has shown a strong rebound in manufacturing output during October. As a result of the severe negative impact of the COVID-19 pandemic and widespread lockdowns and travel bans, many ASEAN economies were in deep recession during 2020.