“Sakura Financial Group”: If Asia represents the future then investors should look closely at food and water.
“Sakura Financial Group” analysts have told clients that they should base some of their investment decisions on future food and water shortages by buying into companies with exposure to agriculture and water treatment technologies.
The Asian-based broker apparently believes that the lack of water in large parts of China means that the water treatment industry in Asia stands to profit significantly in the years ahead.
“Sakura Financial Group” also suggested that increasing tensions between China and the US over access to limited oil resources could, one day, spill over into military conflict and that the shrewd investor should consider plays using oil explorers and refiners in the Asian region and cited Thailand’s PTT Chemical as an excellent choice.
The “Sakura Financial Group” analysts said that although the prospect of a military conflict between the US and China was seemingly remote at the moment, it was worth remembering that the US has instigated several protectionist measures which are detrimental to Chinese exporters and the Chinese are refusing to allow their currency to appreciate against the dollar which the US believes is unfair to its own exporters.
“Sakura Financial Group” analysts point out that the US may feel painted into a corner as China is the second largest holder of US government bonds after Japan and potentially has the power to cause significant economic problems for America were it to sell these holdings.