By the end of 1H 2021, 5 out of the 6 calls were spot on , which is for Asia and Emerging Market (EM) equities to outperform Developed Market (DM) equities,
has not played outHow should you position your portfolio in 2H 2021?1. Overweight Equities over Bonds
Reminder: This is not a recommendation to switch all bonds into equities. Bonds are still a key part of investors' portfolios as a diversifier and stabiliser while generating different sources of returns to investors.
2. Overweight Asia ex Japan and EM over Developed Markets
Reminder: This is not a recommendation to only invest in Asia ex Japan and EM equities. Investors should still have exposure to other core equity markets such as global developed markets and Malaysia to achieve overall portfolio diversification.
3. Add supplementary positions in some of our favourite markets - China, Korea, Taiwan, Indonesia, Brazil
4. Add supplementary positions in megatrend sectors - technology and healthcare
5. Medium-long duration and lower rated / unrated Malaysian bonds
6. Add supplementary positions in Asian High Yield and EM bonds
Reminder: Investors should keep each supplementary positions to within 10% of a portfolio and avoid over concentration risk which could jeopardise overall portfolio stability.
https://www.fsmone.com.my/funds/research/ar...-2021?src=funds