SC First Bank "Risk Asset Investment Still Valid in the Second Half"

'2024 Second Half Global Financial Market Outlook and Investment Strategy Report' Released
Preference for US and India Stocks
"Reduce Portfolio Risk through Asset Diversification Including Bonds and Gold"

SC First Bank announced on the 2nd that it has released the "2024 Second Half Global Financial Market Outlook and Investment Strategy Report" for wealth management (WM) clients.

Investment strategy experts from SC First Bank and its parent company SC Group emphasized that with policy turning points approaching, such as the U.S. Federal Reserve's (Fed) interest rate cuts and the U.S. presidential election in the second half of this year, it is important to quickly adapt to the new environment without resisting the wave of change to find greater investment opportunities.

Accordingly, they judged that the existing investment direction, which places weight on risk assets, remains valid. They recommended maintaining an increased allocation to equities compared to cash and bonds, focusing within equities on markets with growth potential such as the U.S. and India. They also suggested building a balanced portfolio during periods of increased volatility by utilizing various assets including bonds, gold, and alternative investment strategies.

The interest rate cut trend by major central banks, which began in the second quarter, is expected to continue in the second half. The Fed is also predicted to implement rate cuts during the second half based on easing inflationary pressures due to declining rents and a slowing labor market. The policy focus is expected to shift from inflation control to supporting growth. Regarding the U.S. presidential election, while it is a short-term variable, paying attention to macroeconomic and market fundamental factors is considered more important.

Sachin Bambhani, Head of Wealth Management and Branch Business Division at SC First Bank, stated, “Going forward, through SC First Bank’s customized wealth management consultation service ‘SC Wealth Select,’ we will support PB clients in designing optimized portfolios and provide meaningful materials and valuable experiences such as our differentiated global wealth management strategy seminars and investment-related reports.”