CIO Outlook 2023: Playing it SAFE

CIO Outlook 2023: Playing it SAFE

Dubai, UAE – Standard Chartered Wealth Management Chief Investment Office (CIO) released its Outlook 2023 report, outlining its investment strategy and key themes for a continued challenging economic growth backdrop in the year ahead. While slower global growth due to a US economic recession should significantly help to cool inflation, it is likely to remain above levels that central banks are comfortable with. However, it expects growth in China to rebound due to the gradual removal of mobility restrictions and an increased policy focus on growth stabilisation.

Against this backdrop, the CIO team highlighted its recommendation for investors to build a SAFE foundation:

- Secure your yield: With today’s yield levels being one of the big opportunities in 2023, the team is overweight bonds – including government and high-quality corporate bonds – relative to equities and cash.

- Allocate to long-term value: The more immediate opportunity in yield levels should be balanced by exposure to longer-term value, which it primarily sees in Asia ex-Japan equity and bond markets. Within Asia ex-Japan, the team is overweight Chinese equities given their inexpensive valuations and positive catalysts. Another attractive asset class is Asia USD bonds.

- Fortify against further surprises: A US recession outlook means investors need