The mix of strong growth data in a low rates environment prompting the search for yields has provided the backdrop for the constructive tone for investment in assets like equities and commodities.
That was the key observation in the Mid-year Investment Outlook 2021 webinar hosted by UOBAM’s Anthony Raza, Head of Multi-Asset Strategy and Dharmo Soejanto, Head of Investment Partnerships & Solutions at UOB Asset Management.
They shared that there is still room for further growth in risk assets for the second half of 2021 as the global economic recovery remains on track though two key concerns are also utmost among investors: That of the trajectory of the more infectious Covid-19 Delta variants and threat of inflation crimping the pace of growth.
- Markets are in a period of healthy expansionary cycle.
- Growth to moderate into more normal levels after experiencing peak growth but markets can be a little unstable in the short term during the transition.
- UOBAM view: Neutral in the near term but fairly positive in the medium to long term.
- Overweight in high yield credits, commodities and alternatives.
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