Opening Note
The worst of the pandemic may finally be behind us, and global equities rallied strongly coming into 2022 with the reopening of economies. As we move from the mid- to late-cycle stage of the economy, we are mindful of inflation and slower growth.
The inflation we see now, at multi-decade highs, is a combination of disruption due to the pandemic, worsened by events that happened in the first half of 2022. The Russia-Ukraine conflict and China’s strict zero-COVID lockdowns have led to further supply issues and higher commodity prices.
The second half of 2022 is likely to remain volatile as markets navigate elevated prices and higher interest rates. Our insights and ideas are on hand to help you during these uncertain times.
Abel Lim
Head, Wealth Management Advisory and Strategy
Deposits and Wealth Management
Personal Financial Services
H2 2022 Outlook
The global economy, which rebounded strongly from pandemic-induced woes in H1 2020, has since run into several headwinds. These include inflation caused by persistent supply chain issues, exacerbated in part by China’s zero-COVID stance and the supply shock from the Ukraine conflict which led to rising food and energy prices worldwide. Much of the growth ahead will depend on when inflation peaks and subsides and how global central banks’ and governments’ various policy tools can tackle current challenges.
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Watch our H2 2022 Market Outlook video
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Our Strategies
Investors often face uncertainties in their investment journey, and it is important that they be risk aware and understand their willingness and ability to take risks. Our proprietary Risk-First approach can help smoothen investors’ journey.
Rising yields necessitate a quality tilt for income investing. Find out more about our core investing strategies which can help lower your portfolio’s volatility.
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Megatrends continue to drive long-term structural growth in many areas and offer compelling investment opportunities. Find out more about our Megatrend strategies.
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Equities in the Financials sector are expected to outperform the broader equity market as interest rates rise. Find out more about these tactical opportunities.
Read MoreOur Regional Focus
Equities
Regional markets are expected to be boosted by economic reopening, with valuations looking attractive for sectors that benefit from post-pandemic recovery, despite concerns over the impact of inflation on private consumption.
Fixed Income
Asian debt is attractive as bond yields are less steep in some countries due to lower inflationary pressures. Investors need to be selective when choosing bonds within the region and seek diversification within fixed income.
Currencies
Many Asian currencies will likely weaken against the US dollar (USD), due to differences with the US Fed in their degree of monetary policy easing.
Click on the countries below to view their respective updates
