global economy

When buying stocks, investors should disregard sentiments of the day — whether buoyed by central banks and the US Federal Reserve’s “quantitative easing to infinity” or buffeted by doom and gloom news of surging infections, job losses or company closures.

Suffice it to say, this current breed of central bankers have evolved far beyond their traditional role as regulators and ensuring a smooth-operating financial system.

Singapore is one of UBS’ most preferred equity markets in this region and Tan urges investors to look past the short term challenges, and stay vested and bullish.

Canada’s loss may be Singapore’s gain.

The International Monetary Fund downgraded its outlook for the coronavirus-ravaged world economy, projecting a significantly deeper recession and slower recovery than it anticipated just two months ago.

In Singapore, UOB foresees a recession looming, in line with the economic performance across the ASEAN region. It has also kept its full-year headline and core inflation at -0.3% in 2020.

In response to the uncertainty, consumers have cut spending and increased savings, businesses are slashing prices, and wages are under pressure. Deflationary pressures are all around.

Yet, despite the latest bout of volatility, markets have stayed very resilient. The strength and durability of the current rally continue to confound many professional market observers.

For investors who are viewing the New Economy Fund as just another “tech-focused fund”, Budden stresses that the fund is far from a “hot, thematic fund” that focuses only on the latest trends.

Singapore is one of UBS’ most preferred equity markets in this region and Tan urges investors to look past the short term challenges, and stay vested and bullish.