US Equities 4Q22: Fed Tightening Fears Present Opportunities


A rotational shift towards cyclical equities is underway
Chief Investment Office13 Oct 2022
Photo credit: iStock


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.

On a sectoral basis, it is evident that a rotational shift towards cyclical equities within the US market is underway.

  • 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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Click here for the full 4Q22 CIO Insights publication.

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