SC Jeil Bank, "US, China, and Eurozone Stocks Favorable in Second Half"

Corporate Bonds and Emerging Market Bonds Also Attractive

[Asia Economy Reporter Kim Min-young] SC First Bank announced its "2020 Second Half Global Financial Market Outlook and Investment Strategy" report on the 9th for wealth management (WM) customers.

The bank identified the core investment theme for the second half of this year as "Navigation, Finding Opportunities Amid Turbulence." The report analyzed that although the financial market in the first half of 2020 experienced significant volatility due to the COVID-19 pandemic, major governments and central banks implemented unprecedented policies, resulting in a rapid recovery.

Regarding the market in the second half, it is expected that the global economy will continue a gradual "U-shaped" recovery, supported by large-scale stimulus measures from various countries. However, concerns about the resurgence of COVID-19, especially in some regions of the United States and emerging markets, as well as geopolitical risk factors such as the U.S. presidential election and U.S.-China tensions, remain key variables.

SC First Bank emphasized that successfully investing in the second half requires both preparing for market volatility and seeking various opportunities arising during the economic recovery phase. Accordingly, it advised customers considering WM strategies to actively allocate assets to reduce portfolio volatility while appropriately responding to short-term investment opportunities that may arise.

For the second half, the bank expects excellent performance from equity assets and expressed a preference for U.S., Chinese, and Eurozone stocks. Regarding bonds, it recommended securing bonds (corporate bonds and emerging market bonds) that offer relatively stable returns in the zero interest rate era. Additionally, it added that gold could serve as an investment solution to reduce risk in the ongoing uncertain financial market environment.

The bank plans to hold a Wealth Care seminar for about 1,000 top customers on the 21st based on the report's content. Considering the COVID-19 situation, this seminar will be conducted via live streaming using an Ontact (online + contact) method.

Colin Chiang, Head of Wealth Management Division (Executive Director) at SC First Bank, said, "While expectations for economic recovery and strong policy responses will clearly have a positive effect on risk asset investments, uncertainty continues in the investment environment for the second half. Investors must overcome waves of volatility while actively seeking investment opportunities."