equities

We see 2022 as the year of the 'Great Reset'

Also within: The Edge Singapore's stock-picking process.

According to CGS-CIMB, it would be “reckless” to dismiss the recent surge in inflation as inconsequential.

Despite the increased inflation risks, we remain optimistic that our ‘good recovery’ scenario will play out.

Investors should overweight on equities, especially in Asia ex-Japan. EM High-Yield bonds are also recommended.

CGS-CIMB has advised investors in the Asia Pacific region to “overweight” equities and “underweight” bonds in their portfolio.

Stocks have continued to rise despite dismal economic data and corporate earnings, political worries and street protests in the US, renewed US-China trade war tensions as well as pandemic uncertainties.

Legendary investors Stan Druckenmiller and David Tepper were the latest to weigh in after a historic market rebound, saying the risk-reward of holding shares is the worst they have encountered in years.

DBS chief investment officer Hou Wey Fook believes the virus outbreak is a disaster that – despite inflicting some sharp medium-term bouts of pain – will eventually fade away.

Find out how to survive a market crash and protect your investments.