It has been a choppy ride for global markets recently: the Federal Reserve’s efforts to pull back on a bond-buying program that propped up markets the past few years; conflicting growth reports from the US, Europe and China; nervousness in emerging markets: all factors which have put investors on edge.

Do we think it is all a bad thing though?

We actually believe that it will be positive for Asia, as the world normalizes after a bout of ‘steroids’ to heal the global economy. With tapering, the Fed is sending the message that the US economy is on the mend, a development which will benefit Asia’s economies. It presents opportunities for investors to reenter certain markets that had originally benefitted from the inflow of ‘hot’ money, but not experienced the opposite effect later.

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Authored by Whye Choong Low,Head of Asia Pacific, Composition Capital Partners