Standard Chartered has unveiled its Global Market Outlook for the second half of 2024, outlining its investment strategy and key themes for navigating global markets.
Compiled by the Bank’s Wealth Solutions Chief Investment Office (CIO), the report highlights the commencement of major central bank rate cuts as a significant turning point for investors, with policymakers shifting their focus towards supporting growth. The Bank’s CIO recommends adapting to these changes by:
- Staying overweight on equities compared to bonds and cash.
- Favoring US equities globally and Indian equities in Asia.
- Owning gold and Emerging Markets US Dollar bonds as diversifiers.
In this environment, balanced foundation allocations comprising equities, bonds, and alternative assets are likely to outperform income-only allocations. The Bank’s balanced allocation has risen 6.7% year-to-date, outperforming income-oriented strategies, which increased by 0.5%.
For opportunistic allocations, the team continues to favor growth sectors in the US, particularly technology and communication services. In Europe, the barbell-like strategy aligns with the improved growth outlook; the team is overweight on technology and healthcare sectors. In China, the focus is on select government policy beneficiaries, with an overweight on technology, communication services, and consumer discretionary sectors.
Manpreet Gill, Global Chief Investment Officer, stated, “Staying invested for the long term, adapting to trend shifts, and keeping an eye out for opportunistic ideas to add to a diversified portfolio. This is our fundamental investment approach which also underpins our latest outlook report. We believe 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.”
Paul Njoki, Head of Wealth and Affluent Banking, Kenya and East Africa, added, “Our clients remain largely optimistic about economic opportunities in the country. However, they are closely monitoring developments and shifting their focus to understand the impact of current events on their wealth. By working alongside them to understand their individual goals and risk tolerance, we are able to create investment strategies that capitalize on the benefits of a well-diversified, long-term foundation portfolio with sufficient protection to address their needs.”
Standard Chartered’s SC Wealth Select Framework aims to help clients prosper and achieve their life goals through a structured approach designed to grow, manage, and protect their wealth in immediate, short, and long-term scenarios. Known as the Today, Tomorrow, Forever approach, the framework combines Standard Chartered’s over 100 years of experience with real-time insights to guide clients on their wealth journeys.
