December 2022

To many investors, 2022 has been volatile, uncertain and difficult. 2023 is shaping up to be another interesting year where inflation and interest rates are likely to dominate investment markets as growth slows and economic activities fall. It remains extremely challenging to forecast the forward paths of inflation, economic growth, interest rates, company profits and valuations.

We believe that interest rates are likely to stay higher for longer. If as we expect, 2023 turns out to be the ‘tale of two halves’, we see first half of 2023 will provide investors some opportunities to top up their cash or reserves buckets and to prepare for some possible slowdown into the second half of the year.