Feng shui experts predict that 2023 will be a year of hope and prosperity, however, financial experts warned that familiar foes like inflation and geopolitics like the rivalry between the G2 powers of China and the US will continue to haunt investors during the year.
Stefanie Holtze-Jen, APAC chief Investment Officer of Deutsche Bank International Private Bank, shared eight investment ideas that can help investors to navigate systemic risks.
Liquid and investment-grade bonds from the US and Europe According to Holtze-Jen, yields and quality are now no longer mutually exclusive.
"European bank bonds, for example, would seem to be worth greater consideration because underlying capital adequacy and credit risk data have improved substantially in recent years," she said. Standard Chartered reported that the 10-year US government bond yield is expected to rise towards 3.75% to 4.0% in the first quarter of 2023 given that the Federal Reserve is maintaining "tight financial conditions for now."
Citibank, in a separate report, had a similar take saying that they see "potential for pursuing portfolio income" with short-and intermediate-term US dollar-denominated bonds.
Speaking of bonds, Holtze-Jen said active bond portfolio management will remain the watchword in 2023. She said adding floaters, or bonds with variable returns, to the portfolio might be helpful to investors.
In relation to this, DBS Chief Investment Officer Hou Wey Fook said it is also time to pursue a 60/40 portfolio strategy, consisting of 60% equities and 40% bonds.
"With bond yields at above 5% today and equity valuations having mean reverted, we believe the window is now open to be engaged for the long term, in a multi-asset portfolio of equities and bonds," said Hou in a report.
Bu hikaye Singapore Business Review dergisinin Issue 102 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Singapore Business Review dergisinin Issue 102 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Giriş Yap
Singapore's health data bill mandates regulated information sharing
To ensure data disclosure and sharing, the Ministry of Health can impose up to $1m in fines for non-compliance.
Venture capitalists sharpen focus on targeting startups' profit paths
Deal activity in Asia Pacific fell 26.3% YoY in 2023, reflecting VC firms' caution.
Strategic locations and value-added services drive growth in self-storage sector
In Singapore, StorHub has introduced online booking for storage spaces of various sizes.
Why Tim Hortons vies for top spot in Singapore's 'third place' Western coffee scene
Capturing this market is better than competing directly with kopitiams and grab-and-go concepts.
CEO Justin Quek steers OrangeTee to real estate centered around customers
A step toward this commitment is the launch of the consumer-centric event 'Property Festival' in 3Q24.
Retailers are urged to view returns management as loyalty drivers
15% of customers abort a transaction if the return policy is subpar.
National security is put front and center with new Significant Investments Review bill
Legal experts believe cybersecurity and AI entities are likely to be affected by the measure.
Three strategies to mitigate BEPS 2.0's tax impact for MNEs
Should the directive be implemented, selected MNES will be subject to a global minimum tax of 15%.
JustCo debuts first pay-per-minute airport hub for business nomads
The co-working space has around 50 hot desks and nap pods, allowing travellers to 'check-in' at work.
Fr8Labs secures major backing to digitalise Asia's freight sector
Investors are showing strong support for Fr8Labs, a company set on transforming the freight forwarding sector traditionally bogged down by manual processes.