EU 2024 Market Outlook

9

Foreword

Rethinking the macro landscape

Reframing globalisation

Redefining sustainability

Investment implications

Scenario

Rationale

Asset class/Strategy

Asia ex Japan equities

DM recessions vs growth in most EM economies

Recession to slow profits and margins in the US. Valuations of Asia ex Japan equities are more attractive than the US’.

Inflation continues to moderate in most economies

A broad and sustained decline in inflation gives central banks room to cut rates in 2024. At the same time, slower economic growth favours a quality bias.

US and Asian Investment Grade bonds

Japan equities

Improving corporate fundamentals in Japan

More entrenched inflation will allow Japanese companies to raise prices and improve margins. Increasing corporate governance lifts shareholder value.

Multi asset portfolios Low volatility equities Multi factor strategies 10-year US Treasuries Singapore government and SGD corporate bonds

Uncertain market and economic climate

Market volatility to stay as policymakers prioritise credibility over market pressures.

Contributors --------------- Nupur Gupta, Chaitanya Shrivastava, Goh Rong Ren, Leong Wai Mei, Cheong Wei Ming, Eric Fang, Jamie Tay, Weng Jingjing, Ben Dunn, Michael Sun, Ivailo Dikov, Oliver Lee.

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