Page 5 - 2Q2021 RETAIL WEALTH ADVISORY Playbook
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Asset Class View
Asset Class 3Q20 4Q20 1Q21 2Q21
Equities Neutral Neutral Overweight Overweight
US Neutral Neutral Overweight Overweight
Europe Neutral Neutral Underweight Underweight
Japan Neutral Neutral Neutral Neutral
Asia ex-Japan Neutral Neutral Overweight Overweight
China Overweight Overweight Overweight Overweight
Hong Kong Neutral Neutral Neutral Neutral
South Korea Neutral Neutral Overweight Overweight
Taiwan Neutral Neutral Neutral Underweight
India Underweight Underweight Neutral Neutral
Singapore Neutral Neutral Neutral Overweight
Malaysia Neutral Neutral Neutral Overweight
Thailand Underweight Underweight Underweight Underweight
Philippines Neutral Neutral Neutral Neutral
Indonesia Underweight Underweight Neutral Neutral
Fixed Income Neutral Neutral Neutral Neutral
DM IG Overweight Overweight Neutral Underweight
DM HY Underweight Underweight Neutral Overweight
EM IG Neutral Neutral Neutral Neutral
EM HY Underweight Underweight Underweight Underweight
Asia IG Overweight Overweight Overweight Overweight
Asia HY Overweight Overweight Overweight Overweight
Alternatives Neutral Neutral Neutral Neutral
Gold Overweight Overweight Neutral Neutral
Oil Underweight Underweight Neutral Neutral
Hedged Funds Neutral Neutral Neutral Neutral
Cash Neutral Neutral Underweight Underweight
Source: Maybank Group Wealth Management Research, Maybank Kim Eng.
Despite starting the year positively, risk assets witnessed increase volatility in March, attributable to
rising US bond yields and forced liquidation of leveraged positions.
We expect growth recovery to continue gradually with the re-opening of economies around the
world. Inflation and interest rates are rising in tandem with the recovery and may lead to
intermittent volatility. Nevertheless, it is premature to conclude that inflation will run away and
trigger an earlier-than-expected monetary tightening by the central banks worldwide.
We maintain our overweight stance on equities while keeping an overweight stance on the US, China
and Asia ex-Japan. We have turned positive on Singapore and Malaysia.
We retain our neutral stance on fixed income, with a preference for corporate credits over
government bonds. We have turned overweight on DM HY credits to ride on growth recovery and
reduce duration risk against a higher-yielding environment. We maintain our overweight stance on
Asia IG and HY credits.
Our view on oil and gold remains unchanged. We continue to see gold as an effective portfolio
diversifier against growth uncertainties despite our neutral stance.
Source: Maybank Group Wealth Management Research, Maybank Kim Eng.
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