US Equities 4Q22: Fed Tightening Fears Present Opportunities
Data from EPFR Global show that global investors’ appetite for US equities remains healthy as the market saw inflows of USD8.6b (as of 7 Sep) on a quarter-to-date basis, as compared to outflows of USD14.3b and USD4.7b seen in Europe and Japan respectively.
- Likelihood of a “soft landing” for US economy diminishing as restrictive monetary policy persists
- Growth equities have undergone acute selloff but the latest bout of volatility presents opportunities on a 12-month perspective
- Data shows healthy investor appetite for US equities as the market saw inflows of USD8.6b compared to outflows of USD14.3b and USD4.7b seen in Europe and Japan respectively
- On the back of toppish bond yields and attractive valuations, the rotational shift from defensives to cyclicals will persist
- Maintain exposure to US Technology to ride the tailwinds of toppish bond yields
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