As the world teeters on the brink of significant economic shifts, Standard Chartered has unveiled its Global Market Outlook for the latter half of 2024.

The report, crafted by the Bank’s Wealth Solutions Chief Investment Office (CIO), provides a roadmap for investors to navigate the evolving financial landscape, marked by central banks' shift towards growth-supportive policies.

The key takeaway? A new era of major central bank rate cuts is on the horizon, a development that could reshape investment strategies globally.

Standard Chartered's CIO team sees this as a crucial turning point, advocating for a decisive move towards equities over bonds and cash.

Their conviction is clear: favouring US equities on a global scale and Indian equities within Asia is the way forward.

Read More

  1. US national charged in a Nairobi court over Sh174.1 million gold scam
  2. Kenyan fintech Leja surpasses Sh256 billion in B2B transactions in 2024
  3. Kamlesh Pattni, 27 entities linked to gold smuggling trade face sanctions in the US

Gold and Emerging Markets US Dollar bonds are also highlighted as essential diversifiers in this unpredictable environment.

In this evolving landscape, the Bank’s balanced foundation allocations, which include a mix of equities, bonds, and alternative assets, are poised to outperform more conservative, income-focused strategies.

Impressively, the Bank's Balanced allocation has surged by 6.7 per cent year-to-date, significantly outpacing the modest 0.5 per cent growth of income-oriented strategies.

For those with an eye for growth, the CIO team continues to champion sectors that promise dynamism and innovation.

In the US, technology and communication services are the stars of the show. In Europe, a barbell-like strategy is favoured, reflecting an improved growth outlook, with a focus on technology and healthcare.

Meanwhile, in China, the spotlight is on beneficiaries of government policies, particularly in technology, communication services, and consumer discretionary sectors.

Manpreet Gill, Global Chief Investment Officer, emphasised the Bank's fundamental investment approach.

"Staying invested for the long term, adapting to trend shifts and keeping a watch for opportunistic ideas to add to a diversified portfolio. This is our fundamental investment approach which also underpins our latest outlook report," Manpreet stated.

"We hope that by adapting to the shifting winds of policy changes in the coming months, investors can reposition their portfolios to achieve optimal returns that meet their long-term financial goals.”

Closer to home, Paul Njoki, Head of Wealth and Affluent Banking for Kenya and East Africa, provided insight into the local sentiment.

“Our clients remain largely optimistic about economic opportunity in the country, however at the same time, they are closely monitoring developments and shifting their focus to understand the impact of current events on their wealth," he said.

"By working alongside them to understand their individual goals and risk tolerance, we are able to create investment strategies that capitalise on the benefits of a well-diversified, long-term foundation portfolio with sufficient protection to address their needs.”

At the heart of Standard Chartered's advisory services is the SC Wealth Select Framework.

This innovative approach, dubbed the Today, Tomorrow, Forever strategy, seamlessly blends over a century of banking expertise with real-time market insights.

It’s a comprehensive guide designed to help clients grow, manage, and protect their wealth across various time horizons.

In a world of economic uncertainty and constant change, Standard Chartered’s latest market outlook is not just a report; it’s a beacon for investors seeking to navigate the complexities of global markets.

As the financial tides shift, the Bank's expert guidance offers a steady hand, helping investors to not just survive but thrive in the new financial frontier.