Smart Reads of the Week: Be Wary of Political Risk

2021-03-04     thesmartinvestor
Smart Reads of the Week: Be Wary of Political Risk

It’s been a turbulent period for Myanmar in the last four weeks.

A military coup on 1 February toppled the elected government and took power against the people’s wishes.

Since then, there have been massive peaceful protests organised by anti-coup demonstrators that have been punctuated by bursts of violence from the authorities.

ASEAN is rightfully concerned about this violence and is urging for a reconciliation.

This incident reminds us of how we, as investors, should be mindful of political risk when investing.

Having exposure to a developing country such as Myanmar, with its bountiful natural resources, is certainly rewarding.

But you always have to be wary of the possibility of political trouble, especially if the country has a history of militarism.

Investors in companies such as Memories Group (SGX: 1H4), Yoma Strategic (SGX: Z59) and Emerging Towns and Cities Ltd (SGX: 1C0), all of which have exposure to Myanmar, were caught off-guard.

Here’s a list of our top articles for the week.

1. Battle of the Banks: Which of the Local Banks Should You Pick?

Singapore’s three big local banks have reported their full-year 2020 earnings. Which of the banks makes the best investment candidate right now?

2. 3 Stocks Enjoying a Bull Run in 2021

Here are three stocks that have done well in 2020 and are poised for yet another bull run this year.

3. 5 Companies That Have Raised Their Dividends

Income-seeking investors should take note of these five companies that have raised their full-year dividends despite the pandemic.

4. CDL Impairs 93% of Sincere Group. Can the Property Giant Recover?

City Developments Limited (SGX: C09) just announced a huge loss for its 2020 earnings. Can the property behemoth see a recovery in 2021?

5. Sembcorp Marine Remains Deeply in the Red: Can the Oil and Gas Giant Orchestrate a Turnaround?

Sembcorp Marine (SGX: S51) also announced a massive loss for its latest fiscal year. Can the offshore and marine player get back on its feet again?

6. Sembcorp Industries Reports Heavy Losses: Can The Utilities Giant Power Up A Recovery in 2021?

Sembcorp Industries (SGX: U96) is another blue-chip company that reported big losses. Can its utility division pick up this year and lift the company back into the black?

7. Your Stocks Have Lost Money: Should You Double Down?

It’s never easy to experience a fall in share price for the stocks you own. So, what should you do in such cases? Buy more or sell?

8. Will Stock Markets Continue Rising This Year?

With more good news flowing in on COVID-19 vaccines, could stock markets continue their ascension?

9. 3 Ways to Boost Your Retirement Passive Income as the Economy Recovers

Here are three effective methods to increase your retirement passive income so that you can enjoy an idyllic retirement.

10. Get Smart: How to Survive the Coming Stock Market Crash

Market crashes are inevitable. How you prepare and deal with them is what separates the successful investors from the unsuccessful ones.

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Please refer to the individual articles for stock ownership disclosures.

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