Presentation slides regarding current investing opportunities and strategies in Indonesia right now from a finance seminar at Universitas Gunadarma on October 8th.

1. By NICO Omer Jonckheere, SE, MM
Investing In the Midst of an
Economic Turmoil:
Opportunity or Challenge?

2. The 20 Fastest-Growing
Economies This Year

3. Asia’s ascension will be led by 10 economies, which could
account for 50 percent of global GDP by 2050.

6. China is no longer the LOW-COST ASIAN MANUFACTURER.
That’s Indonesia, by far.

7. The MSCI emerging markets Index has gone absolutely nowhere for
the last six years – a time frame during which the S&P 500 Index has
doubled.
Have Emerging Markets Lost
Their Edge?

8. U.S. equities are currently 70% more expensive than
emerging market equities.

9. IHSG or JCI?

12. It should come as no surprise that fund managers’
positioning on EM relative to DM is the most extreme on
record!

13. While relative to history, the space is under-owned – by a lot:

14. Based on Deutsche Bank’s valuation metrics, bonds and
equities alone are at their highest ever combined valuations.

15. Emerging Market FX has been falling for 3 straight years…

16. INVESTMENT STRATEGY
• The key is to look for cash flow, a reasonable dividend
payout, if you can find it, and growing fundamentals.
Companies that exhibit those characteristics represent
value. There are not many, but for those investors
willing to do the homework, they exist.
• I remain positive towards those kinds of investments
that will retain inflationary protection like
infrastructure, real estate and other hard assets such as
commodities.

17. • As Greg Fisher of Adepa Asset Management wrote,
amid a world of worries, “Keeping the discipline of
holding lowly valued, under-owned and unleveraged
companies is likely to continue to protect our capital
and earn us both income and capital appreciation over
the longer term.”
• Or to put it more plainly, and in the words of Warren
Buffett, “Price is what you pay; value is what you get.”

18. • Also stick to small-caps, which come with big
advantages because of their size. Few analysts cover
the smaller stocks on the market, and few mutual
funds are even allowed to invest in them. That lack of
professional awareness of small caps means that you
are far more likely to run across a major mispricing or
hidden opportunity in a small cap than you are in a
larger name.

19. CONCLUSION
The DOLLAR is KING right now, but what’s undeniable is
that global growth and massive wealth creation will occur
in Asia in the decades to come. And this CRISIS may be
providing a great OPPORTUNITY to take advantage of that
trend.