Future of Investing: Paradigm shifts and trends to watch in Asia

Executive summary

In our Fullerton Outlook 2022 webinar “Future of Investing: Paradigm shifts and trends to watch in Asia”, our panel of in-house and external experts explored three major C’s – COVID-19, China and Climate change, and its implications for investors. In this report, we explain further the strategies that can help investors navigate these three themes and the shifting trends across Asia.

  • The macro environment has become more challenging since the second half of 2021, as investors face greater risks from high inflation and weaker growth.
  • That said, we retain a positive view on global risk assets, driven by positivity on Developed Market (DM) equities, as earnings growth expectations are still above average and real yields are negative.
  • Due to the paradigm shift in China, coupled with Asia’s narrower growth advantage over DM, we are negative on Chinese and Asian equities. More policy stimulus from China would be positive, but investors still need to be selective as policy shifts have changed the competitive landscape.
  • We believe there are valuable alpha opportunities across sectors that have robust structural trends, which could be reinforced by spending changes due to COVID-19, Climate change, and reforms in China.