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PR Newswire
30-12-2014, 10:37 AM
A view from the private banker. I reckon the view is not exclusive to Bank of Singapore, but generally true for its peers around the world.
This probably the reason for active money to sit by the sideline with cash hoarded, after exited from Russia, and M'sia?
Hold on to cash as markets poised for sharp swings in 1H2015: Bank of Singapore
SINGAPORE (Dec 30): Stocks on Wall Street have been setting new highs as the world's largest economy continues to strengthen and outperform other major economies. But investors should consider taking some profits on US equities, and even pare their holdings in stocks elsewhere, as financial markets are likely to be volatile in the first half of 2015 as the Federal Reserve prepares to raise interest rates, according to Bank of Singapore.
The Fed is likely to hike rates in 2Q2015 instead of the final quarter of next year as expected by many in the market, the private bank's global head of products, Marc Van de Walle, told theedgemarkets.com in a recent interview.
"When (former Fed chairman) Bernanke first talked about tapering last year, markets fell. But people later got comfortable with it and saw that US growth was not that bad. We think something similar could happen when the Fed says ‘We’re going to hike rates.’ Markets might be jittery. We don’t think it’s fully discounted."
With that in mind, Bank of Singapore has cut its call on equities for next year to "neutral" from "overweight" and upgraded its view on cash to "overweight" from "underweight".
"Take some profit and build up some cash because we think there might be some tidal waves in the market. We have been underweight on cash for the last five years. It's a tactical change to protect some gains ahead of what we think will be volatility," said Van de Walle, who oversees the private bank's investment strategy, research, discretionary portfolio management and wealth planning.
...
http://www.theedgemarkets.com/sg/article...-singapore
This probably the reason for active money to sit by the sideline with cash hoarded, after exited from Russia, and M'sia?
Hold on to cash as markets poised for sharp swings in 1H2015: Bank of Singapore
SINGAPORE (Dec 30): Stocks on Wall Street have been setting new highs as the world's largest economy continues to strengthen and outperform other major economies. But investors should consider taking some profits on US equities, and even pare their holdings in stocks elsewhere, as financial markets are likely to be volatile in the first half of 2015 as the Federal Reserve prepares to raise interest rates, according to Bank of Singapore.
The Fed is likely to hike rates in 2Q2015 instead of the final quarter of next year as expected by many in the market, the private bank's global head of products, Marc Van de Walle, told theedgemarkets.com in a recent interview.
"When (former Fed chairman) Bernanke first talked about tapering last year, markets fell. But people later got comfortable with it and saw that US growth was not that bad. We think something similar could happen when the Fed says ‘We’re going to hike rates.’ Markets might be jittery. We don’t think it’s fully discounted."
With that in mind, Bank of Singapore has cut its call on equities for next year to "neutral" from "overweight" and upgraded its view on cash to "overweight" from "underweight".
"Take some profit and build up some cash because we think there might be some tidal waves in the market. We have been underweight on cash for the last five years. It's a tactical change to protect some gains ahead of what we think will be volatility," said Van de Walle, who oversees the private bank's investment strategy, research, discretionary portfolio management and wealth planning.
...
http://www.theedgemarkets.com/sg/article...-singapore
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