CIO Insights 2Q22
Dear valued clients,
Amid the upheaval from the Russia-Ukraine conflict, alongside worries over the impact of surging oil price on inflation and the Fed’s rate hikes, many clients are asking if they should just liquidate their portfolios and hold cash.
For sure, market sentiment is never positive in any outbreak of a military conflict.
Although raising cash may mitigate the downside risk for a while, holding a substantial amount of cash is no antidote as rising inflation will only erode its purchasing power over time.
We advocate for portfolios to stay engaged and anchored in the best-in-class companies.
Despite the impact of oil on inflation and the increasing risk of stagflation, economic recovery from the post-pandemic reopening of economies is supportive of staying invested.
Continue to employ our barbell approach with secular growth equities and income-generating assets, and add gold as a risk diversifier.
We upgrade China to Overweight.
In this edition of CIO Insights, we look at the potential of Growth Capital in the Private Equity space, and highlight Healthcare as a growth sector with defensive characteristics.
We do hope and pray for an end to these very challenging times.
Hou Wey Fook, CFA
Chief Investment Officer
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