The world may still be facing inflationary pressures but there have been some “good structural developments”, says Lim. He highlights the US as an “interesting market”. “Valuations may not be quite there yet, but if you look at some of the longer-term trends, for example, government incentives to industrialise the economy, we are confident that down the road, we should be able to find good investment opportunities from that.”
Higher real interest rates may be a “difficult starting point” for almost all asset classes, but for long-term investors, the current macroeconomic environment holds promise, says Lim Chow Kiat, CEO of GIC.
“For long-term investors, higher asset yields is a good thing. The compounding is the driver of longer-term return,” says Lim on a panel at the Bloomberg New Economy Forum on Nov 16.
