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Looking Past A US Recession + Continued Recovery Amid Macro Uncertainties A US recession is looming. Last year, defensive stocks outperformed growth stocks significantly. Is the stock market already pricing in a recession? Financial markets have a way of looking ahead. Will equities start to price an economic expansion when a recession starts? The strong air travel demand released by Singapore's reopening is pushing SIA's FY23 net profit to a record level not seen in the past decade. This has also lifted the outlook for all the downstream aviation service providers. Heading into FY24, the expected reopening of China are likely to provide some support to the financial performance of the Singapore Aviation sector. However, macroeconomic uncertainties from a global recession and unique challenges for aviation service providers still exists. Against this backdrop, what is the outlook for Singapore aviation sector and are airline stocks a good investment right now?Speaker's Profile Paul is the strategist of UOB Kay Hian Wealth Management. He has 30 years' investment experience in the capital markets and commodities and has held positions in the UK, Geneva, Singapore and the US for the world’s largest commodities trading firm. Roy is a Senior Equity Analyst covering the regional aviation sector. He has 10 years’ experience as an investment professional, including 7 years in equity research and 3 years in the corporate development (M&A and Strategy) function of an SGX-listed transportation conglomerate.
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