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.

For Accredited Investors Only. This document is intended to be for information purposes only and it is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument and is not intended to provide and should not be relied upon for accounting, legal or tax advice, or investment recommendations.

The information in this market outlook is derived from sources which we consider to be reliable. However, it may not in all cases be verified independently and we do not attest to its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. Forecasts may be the consensus of extremely divergent possibilities and the full range of potential outcomes should be appreciated. No representation or warranty is made that any value (or proximity to) any value, return or forecast will be achieved. The opinions expressed are those of employees of Schroder & Co. (Asia) Limited, and reflect their judgement at this date and are subject to change. Reliance should not be placed on the views and information in this market outlook when taking individual investment and/or strategic decisions. 

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Contact Schroders Wealth Management

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

Jasper Lai

Jasper Lai

Head of Client Advisory, Asia