Every investor has a bias towards where they live – they are familiar with the company names, sometimes investors know or see management of the company and there are multiple other reasons, but most people have bias. At the end of the year, major investment banks look towards the next year to see where there are undervalued companies or opportunities (investment bankers always see opportunities somewhere). Just because there is bias, does not mean you have to diversify or change the bias, just understand likely you have some.

In an article by Harish Sridharan of Reuters, global banks are turning bullish on South Korea and Taiwanese shares, expecting a rally in semi-conductor stocks.

Goldman Sachs says South Korean stocks are the bank’s top rebound candidate and expects a 2023 return of 30%. The premise is Chinese demand is expected to increase.

Morgan Stanley believes Korea and Taiwan have an early-cycle leaders in the demand recovery. The chipmakers such as Samsung Electronics or SK Hynix could rise 50%.

The elephant in the room or geopolitical events is what will China do in regard to Taiwan? One way to limit the risk is buy a country ETF stock.

Linking to dividend paying stocks, in every stock market around the world there are great stocks and very, very hopeful stocks. there are very good reasons to be diversified, in different parts of the country, in other countries but there are good reasons to have bias. The answer is it depends on the individual investor, but the numbers are the same – for you to make money the company needs to be profitable and ideally pay a dividend. If they can do that on a consistent manner, there is limited reason to look outside your bias area. Investing should be reasonably comfortable, and you want to limit the risk and allow the rewards to flow to you. There are always opportunities, but in the long run steady is a very good strategy.

There are more questions than answers, till the next time – to raising questions.