Foreword
When we entered 2024, we outlined reasons for both optimism and caution. As we progress into the second half of the year, our market outlook remains balanced, even as the underlying factors for optimism and caution have evolved since.
The global economy demonstrated resilience in the first half of the year, with slower but better-than-expected growth, supported by strong labour conditions and robust consumer demand. Consumers continued to spend, while wages continued to rise. At the same time, the manufacturing outlook brightened as global trade recovered.
The economy’s resilience instils confidence in its ability to withstand headwinds such as high interest rates, persistent inflation and geopolitical risks. Economic growth and strong corporate fundamentals will drive financial market performance over the next six months, even with high borrowing costs. Furthermore, increasing adoption of generative artificial intelligence (AI) is starting to transform businesses, potentially benefitting companies outside of the AI investment cycle.
However, we must also note that the resilient economy and strong labour market have contributed to inflation staying persistent. Although inflation is gradually declining, it remains above targeted levels, preventing some major central banks from easing monetary policy and cutting interest rates. Geopolitical tensions, including two ongoing wars, linger unresolved, while the upcoming United States presidential election injects additional uncertainty and warrants caution.
In the second half of 2024, it is crucial to remain invested to stay ahead of inflation. Diversifying your portfolio is key to seizing opportunities as they arise, and to withstand periods of volatility during unexpected market events. Enhance investment income by complementing bond funds and investment grade bonds that provide regular income, with quality dividend stocks that can also offer potential capital growth in the long term. As always, consider risks before potential returns.
Our market insights and strategies are designed to guide you towards achieving your financial objectives in this dynamic investment landscape. By working together, you can build a resilient portfolio that not only aligns with your goals but also helps you choreograph your financial future.
Jacquelyn Tan
Managing Director
Head, Group Personal Financial Services
Key Considerations and Strategy
Source: UOB PFS Investment Strategists
Additional Resources
Contact a UOB Advisor
Download a digital copy
Get more investment insights
Credits
Credits
Managing Editor
- Winston Lim, CFA
Singapore and Regional Head,
Deposits and Wealth Management
Personal Financial Services
Editorial Team
- Abel Lim
Singapore Head,
Wealth Management
Advisory and Strategy - Michele Fong
Head, Wealth Advisory and Communications
Editorial Team (cont’d)
- Tan Jian Hui
Investment Strategist,
Investment Strategy and Communications - Low Xian Li
Investment Strategist,
Investment Strategy and Communications - Zack Tang
Investment Strategist,
Investment Strategy and Communications - Sarah Sng
Intern
Important notice and disclaimers
The information contained in this publication is given on a general basis without obligation and is strictly for information purposes only. This publication is not intended to be, and should not be regarded as, an offer, recommendation, solicitation or advice to buy or sell any investment or insurance product and shall not be transmitted, disclosed, copied or relied upon by any person for whatever purpose. Any description of investment or insurance products, if any, is qualified in its entirety by the terms and conditions of the investment or insurance product and if applicable, the prospectus or constituting document of the investment or insurance product. Nothing in this publication constitutes accounting, legal, regulatory, tax, financial or other advice. If in doubt, you should consult your own professional advisers about issues discussed herein.
The information contained in this publication, including any data, projections and underlying assumptions, are based on certain assumptions, management forecasts and analysis of known information and reflects prevailing conditions as of the date of the publication, all of which are subject to change at any time without notice. Although every reasonable care has been taken to ensure the accuracy and objectivity of the information contained in this publication, United Overseas Bank Limited (“UOB”) and its employees make no representation or warranty of any kind, express, implied or statutory, and shall not be responsible or liable for its completeness or accuracy. As such, UOB and its employees accept no liability for any error, inaccuracy, omission or any consequence or any loss/damage howsoever suffered by any person, arising from any reliance by any person on the views expressed or information contained in this publication.
Any opinions, projections and other forward looking statements contained in this publication regarding future events or performance of, including but not limited to, countries, markets or companies are not necessarily indicative of, and may differ from actual events or results. The information herein has no regard to the specific objectives, financial situation and particular needs of any specific person. Investors may wish to seek advice from an independent financial advisor before investing in any investment or insurance product. Should you choose not to seek such advice, you should consider whether the investment or insurance product in question is suitable for you.
We use cookies to improve and customise your browsing experience. You are deemed to have consented to our cookies policy if you continue browsing our site.
