Tenzing pacific services

Market Update for February:
Make mine a double

Craig McAvinue By Craig McAvinue – 1 March, 2023

“A nation is not made wealthy by the childish accumulation of shiny metals, but is enriched by the economic prosperity of its people.”

Stock and currency markets performance

February, the shortest month, ended with markets down, due in part to profit-taking after the bumper crop that was January. Concerns over Federal Reserve policies linger as investors continue to assess whether interest rates will remain relatively high for an extended period.

Stock performance Feb 2023

Data table is from Google Finance

When markets go backward, the USD usually surges forward, and this trend played out neatly in February.

Currency Performance

Data table is from Google Finance

Stock markets remain volatile, but some doing better than others

Market fluctuations are an inevitable part of investing and most follow a similar pattern. From October through November of 2022 was the last period when we saw back-to-back moves in the same direction (up), but since then the general trend has been up one month, down the next.

A notable outlier during February was the FTSE 100, which was up whilst most other markets went in the opposite direction. During the month of February, the FTSE 100 broke through the 8,000 mark for the first time in its history. After the Covid crash in March 2020, when the FTSE 100 fell more than 2,000 points to 5,500, we have seen a roughly 45% increase in the following two years.

FTSE 100

As always, sectors matter

The sector components of the FTSE 100 differ from US market indices in that technology shares do not play a significant role in its overall performance. Large sector components of this index are Oil & Gas, Consumer and Healthcare. Regular readers will know that with a long-term thinking cap on, two out of these three sectors are areas that I believe will gain you the best chance of steady growth, with Oil & Gas being the odd man out.

Recent times have shown that those invested in the Oil & Gas sector have seen very strong results. But equity investing is not based on performance during a year or even two; it’s a longer term proposition, with five years being a fair timeframe.

Examples of companies that continue to occupy a top spot in market capitalization on the FTSE 100 include Shell, AstraZeneca and Diageo, each representing one of the aforementioned sectors. All are great businesses, giants of industry and truly global, generating revenue from almost every country in the world.

Shell Diageo Astra

There was much talk about Shell at the start of the month when it released its 2022 profits, showing a record-breaking year with profits of £32.2 billion. However taking a five-year view on these companies, £10,000 invested in each would today be worth:

  • Shell:  £13,100
  • Diageo: £15,000
  • AstraZeneca: £23,400
    Although overall return on businesses like Shell would be higher than indicated because of generous dividends, when it comes to a capital growth strategy, solid businesses in consumer-led sectors will almost invariably produce good returns.

The consumer is king

The FTSE 100 is a London-based exchange so the reporting currency is GBP. The reporting currency tells only part of the story however – investors should not be misled into believing that buying this index means they are investing in the UK.

For example, Diageo and Unilever, both leading components of the FTSE 100, are consumer-driven businesses that derive over half of their revenue from Emerging Markets. The middle-class Indian factory owner who can now afford to buy Johnnie Walker whisky (a Diageo product) instead of Honey Bee, will buy Johnnie Walker again tomorrow. As will the Chinese housewife who moves from local ice cream to Unilever-owned Magnum – tomorrow she buys Magnum again. Growing middle classes are everywhere in the developing world.

Unilever and Diageo

These are factors that drive these new market highs and breaking notable benchmarks such as the FTSE 100 breaking 8,000.

And higher barriers will continue to be broken. 2022 was a horrific year, with so many gains being wiped out. Last month’s results clearly illustrate we are not out of the woods by any stretch.

But growth and positive returns are there … you just need to know where to find them. Maybe it’s time to order a double in the Consumer and Healthcare sectors.

Ask a question. Get a quote. Talk, chat, email – your choice

These articles are intended to give you enough information to make informed decisions, but health insurance is complicated. Whether you still have questions on this topic or feel ready to take the first steps toward getting a policy, our advisors can help.

contact us

Questions? Want a quote or consultation?

Work with a Tenzing expert
No obligations, no fees, no pressure

We will never sell or use your personal information for any reason other than to provide these services.

Personal Finance Discovery Call

or
Craig MCavinue Tenzing
Open Hours:

Mon – Fri: 8.30 am – 6 pm, Saturday – Sunday: CLOSED

Johannes Heikkila

Advisor
From Finland
Expat for 1 year
Speak Finnish, English & Spanish

Speciality:
- Health Insurance
- Savings Plans

Robert Cunningham

Advisor
From the UK
Expat for 13 years in Thailand & Vietnam
5 years' insurance & financial services

Speciality:
- Health Insurance
- Life Insurance
- Savings Plans

Romain Camillo

Senior Advisor
11 Years in Insurance & Financial Services
Expat in thailand for 7 years
Joined Tenzing in 2020
Speaks French & English


Speciality:
- Health Insurance
- Life Insurance
- Savings Plans"

Nancy Dao

Advisor
From Vietnam
International Business from UK
Lived in Singapore
Speaks Vietnamese & English

Speciality:
- Personal Health Insurance
- Group Health Insurance

Hunter Deems

Advisor
10 years' experience in insurance and investments
Joined Tenzing in early 2020

Speciality:
- Investments
- Savings Plan
- Health & Life Insurance
Patrik Shore Tenzing Pacific Services

Patrik Shore

Senior Advisor
From Sweden & New Zealand
7 years' insurance experience
Joined Tenzing in 2019
Crim Science
Speaks English and Swedish

Speciality:
- Savings Plans
- Health Insurance
- Life Insurance

Geoffrey Mann

Advisor
From the US
Employee benefits & insurance compliance background
Joined the Tenzing team in 2019
Law degree from the US

Speciality:
- Personal Health

Nhu Nguyen

Senior Advisor
From Vietnam
Joined Tenzing in 2017
Fluent in Vietnamese & English

Speciality:
- Group Health & Life Insurance
- Personal Health"
Tenzing's advisor

Ian Comandao

Health Insurance Manager
From Philippines
MBA from Duke University
Expat for 20 years in US, China, Hong Kong & Vietnam Worked at Tenzing since 2018
Fluent in English, Tagalog, Mandarin

Speciality:
- Personal Health Insurance
- Group Health Insurance
- Business Insurance

Craig McAvinue

Director of Wealth Management
From the UK
25 years' expereince in investments & insurance
Expat in Thailand for 5 years
Chartered Accountant by trade
Holistic approach to consulting his clients

Speciality:
- Investments
- Savings Plans
- Health & Life Insurance

Quinn Miller

CEO & Managing Partner
From the US
Joined Tenzing in 2014
Expat for 10 years in Vietnam
Finance & Entrepreneurship Degrees

Speciality:
- Group Health Insurance
- Life Insurance
- Savings Plans"
  • 84 35857 2629
  • 84 35857 2629
  • quinn.miller@ten-pac.com

Quinn Miller

CEO & Managing Partner
From the US
Joined Tenzing in 2014
Expat for 10 years in Vietnam
Finance & Entrepreneurship Degrees

Speciality:
- Group Health Insurance
- Life Insurance
- Savings Plans"