Webinar: The economic recovery continues

  • Global growth remains remarkably strong, but the rate of growth may now have peaked. 
  • We still expect equities to deliver positive returns and maintain our overweight exposure to the asset class. However, performance may not be as strong as it has been so far this year and there could be periods of volatility.    
  • While equity markets look expensive, this doesn’t mean they can’t continue to generate attractive returns. 
  • Strong earnings growth this year means that valuations are looking much more reasonable than they were coming into the year.
  • We have looked at previous periods where markets appeared expensive based on long-term measures and found that very often they have continued to perform well.
  • Evidence continues to suggest that this year’s rise in inflation will be transitory. Core inflation, which excludes energy and food prices, remains contained. However, we could see inflation start to rise again later next year.
  • We continue to like “value” sectors within the stock market, with a preference for higher quality companies.
  • We retain the defensive holdings within our portfolios. Given the risk of higher inflation, we prefer defensive assets that offer inflation protection such as gold and inflation-linked treasury. 

Watch the video above to find out more.

This article is issued by Schroders Wealth Management, which is part of the Schroder Group and a trading name of Schroder & Co. (Hong Kong) Limited, Level 33, Two Pacific Place, 88 Queensway, Hong Kong. Licensed and regulated by the Hong Kong Securities and Futures Commission. Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.

Contact Schroders Wealth Management

To discuss your wealth management requirements, or to find out more about Schroders Wealth Management and our services, please contact:

Robert Ridland

Robert Ridland

Head of Wealth Management, Hong Kong
Jelmer Kattevilder

Jelmer Kattevilder

Portfolio Director