Standard Chartered: “Opportunity to earn income in light of torn Central Banks”

Standard Chartered: “Opportunity to earn income in light of torn Central Banks”

- US Federal Reserve to slow rate hikes after July as inflation peaks

- Raises allocation to “attractive” bonds at the expense of equities

- Diversified income allocation basket now offers more than 6% yield

Dubai, United Arab Emirates – Standard Chartered announced today its investment outlook for the second half of 2022. In its report, titled “Walking a tightrope”, the bank highlighted key opportunities for investors to earn a high income through increasing allocation to bonds by dialing back exposure to equities; and through positioning their portfolios for outperformance of Asia (ex-Japan) and UK equities.

Standard Chartered said its model globally diversified income allocation basket now offers more than 6% yield following the rise in bond yields this year. The risk-reward balance for bonds have turned more attractive after the rise in yields. With equities, especially in the US and Europe, facing rising risk of central banks tightening monetary policy too much, the bank sees an opportunity for investors to dial back exposure to equities and move to bonds. Within equities, it highlighted its preference for Asia ex-Japan on the back of a policy-driven economic recovery in China. Meanwhile, UK equities also look attractive because of the market’s high dividend yields and exposure