Standard Chartered released the Second Half Global Market Outlook report, titled “Keep Calm and Carry On.” The report aims to guide investors on their next steps to ensure they can remain stable in challenging global and local economic situations.
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The report focused on two key motives: the first was a ‘no-landing’ scenario, which argues for an increase in equities, and the second was a scenario where risky assets are not worth holding totally as a deep downturn awaits. The Chief Investment Officer of Standard Chartered, Manpreet Gill Singh, described the strategy as a way to Capitalize on market opportunities, allocate broadly, Lean to Asia, and Manage volatility (CALM).
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In the report, Equity markets are reported to have surged at a headline index level, and the view is that they may rise further, at least in the short term. According to the report, Leading indicators of economic growth (mostly in the USA) paint a less optimistic picture, and most major central banks remain more concerned with rising inflation than weak growth indicators.
The report further says that it is tempting to either fully chase the surge in equities or retreat to a very conservative portfolio. Investors are urged to keep CALM and maintain a steady relationship with their portfolios, for instance, by capitalizing on market opportunities via high-quality government bonds and upgrading equities to core allocations, among others.
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