Standard Chartered hosts Global Market Outlook for second half of 2024; forecasts growth in global asset allocation

Standard Chartered's Chief Investment Officer for Africa, the Middle East, and Europe, Manpreet Gill, has underscored the pivotal role of global asset allocation amidst evolving market conditions.

In a dynamic presentation titled 'Adapting to Shifting Winds', in Accra, he outlined the bank's comprehensive outlook for the global investment landscape in the second half of 2024.

Reflecting on the first half of 2024, Gill highlighted the success of their 'sailing with the wind' approach, noting robust performance across various asset classes, particularly growth-oriented strategies.

Looking ahead, he emphasized the theme of adaptation amidst changing market dynamics, encapsulated in the outlook titled 'Adapting to Shifting Winds'.

"Our outlook for the remainder of the year revolves around three key messages," Gill continued.

"Firstly, we foresee continued strength in global equities relative to bonds and cash. Secondly, regional disparities will shape equity performance, with the U.S. expected to lead amid concentrated market focus. Lastly, we see emerging opportunities in sectors like emerging market bonds and gold, driven by supportive central bank policies," he elaborated.

Mr. Gill is a key member of Standard Chartered’s Group Investment Council and an advisor to the Bank’s Discretionary Portfolio Management division.

Mr. Gill also addressed broader economic factors, including the anticipated impact of the U.S. presidential elections on global markets. "Regardless of the election outcome, historical data suggests that presidential election years tend to be positive for stock markets," Gill asserted, highlighting resilience across different political scenarios.

Touching upon investment strategies, Gill advocated for a balanced approach, emphasizing the importance of foundational allocations alongside opportunistic investments.

He noted the attractiveness of current bond yields relative to cash, urging investors to consider locking in yields amid potential future rate cuts by central banks.

Additionally, Mr. Gill expressed cautious optimism about global economic stability, highlighting potential risks such as elevated market valuations and geopolitical uncertainties.

"Navigating these challenges requires agility and strategic foresight," he remarked, underscoring Standard Chartered's commitment to guiding clients through the complexities of the global investment landscape.

Henry Baye, Chief Executive Officer , Standard Chartered Jersey, United Kingdom, outlined three distinct roles that define the bank's approach: as a "Risk Manager," navigating global financial risks; a "Diversity Bank," focused on long-term wealth management; and a "Lifecycle Bank," offering comprehensive financial services throughout clients' life cycles.

These identities, he emphasized, reflect the bank's commitment to supporting clients at every stage of their financial journey.

He posited that with increasing international and inter-generational mobility, affluent clients have growing needs to manage their wealth across different jurisdictions. With that in mind, Standard Chartered globally, has sought to significantly strengthen its International Banking proposition – across its footprints to create a network of expert wealth advisory solutions. He mentioned that the Bank offers an extensive range of tailored wealth services, including access to specialist expertise.

Furthermore, he emphasized the bank's client-centric approach, citing dedicated relationship managers and a wide array of financial products tailored to meet individual client needs. From student accounts to sophisticated wealth management solutions, Mr. Baye stressed the bank's flexibility and commitment to exceptional client service.

On his part, Jojo Bannerman, Head of Financial Markets at Standard Chartered, restated his earlier recommendation from the first half of 2024, urging both individual and institutional investors to diversify their portfolios across domestic and international markets, emphasizing the heightened significance of ongoing geopolitical events.

"Recent developments have been tough teachers, but invaluable ones. They've underscored the importance of resilience in investment strategy. The biggest takeaway remains clear: maintaining a well-diversified portfolio not only mitigates risks but also positions investors to weather uncertain times with greater stability and confidence,” he said.

The presentation concluded with an interactive Q&A session, where attendees engaged Mr. Gill and Baye on topics ranging from sector-specific insights to regional market forecasts, affirming the relevance of Standard Chartered's forward-looking approach amidst a backdrop of economic transformation and market evolution.