The Asian Banker Thursday, 18 July 2024

StanChart H2 2024 Outlook: Adapting to shifting winds

5 min read

Standard Chartered wealth solutions chief investment office (CIO) has released its Global Market Outlook for the second half (H2) of 2024, providing its investment strategy and key themes for navigating global markets.

The start of major central bank rate cuts marks a key turning point for investors as policymakers switch their focus towards supporting growth. The bank’s CIO sees this as a good time to adapt to the shifting winds by:

(i) Staying overweight equities over bonds and cash

(ii) Favouring US equities globally and India equities in Asia

(iii) Owning gold and emerging markets US dollar bonds as diversifiers.

Given this environment, balanced foundation allocations comprising equities, bonds and alternative assets are likely to outperform allocations that are solely aimed at generating income. The bank’s balanced allocation has risen 6.7% year-to-date, outperforming income-oriented strategies, which rose 0.5%.

For opportunistic allocations, the team continues to favour growth sectors in the US focused on the technology and communication service sectors. In Europe, the barbell-like strategy is consistent with the improvement in the growth outlook; the team is overweight on the technology and healthcare sectors. In China, the team favours select government policy beneficiaries and is overweight on the technology, communication services and consumer discretionary sectors.

Steve Brice, global chief investment officer, said: “Staying invested for the long term, adapting to trend shifts and keeping a watch for opportunistic ideas to add to a diversified portfolio. This is our fundamental investment approach which also underpins our latest outlook report. We hope that by adapting to the shifting winds of policy changes in the coming months, investors can reposition their portfolios to achieve optimal returns that meet their long-term financial goals.”

 

Re-disseminated by The Asian Banker

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