Please upgrade your browser

We take your security very seriously. In order to protect you and our systems, we are making changes to all HSBC websites that means some of the oldest web browser versions will no longer be able to access these sites. Generally, the latest versions of a browser (like Edge, Chrome, Safari, etc.) and an operating system family (like Microsoft Windows, MacOS) have the most up-to-date security features.

If you are seeing this message, we have detected that you are using an older, unsupported browser.

See how to update your browser

Investment Monthly - July 2022

Amid central bank policy normalisation and real income squeezes, the trend of growth downgrades is likely to persist.
01 July 2022
    Download the full reportPDF, 4.56MB

    Key takeaways:

    • Ongoing geopolitical tensions, high inflation, and policy hikes keeps a lid on market performance. Overall, we think a defensive allocation is appropriate, which means a selective approach rather than materially reducing equity exposures
    • We think an overly bearish view is not justified. A significant recession is unlikely this year. Interest rate hikes are well priced and likely to peak below previous high points, limiting the downside. A window of better performance may open up later in the year amid cooling inflation and as China policy easing filters through the economic system
    • We focus on regional, style and thematic allocations in equities (e.g. value and quality factors), income strategies in fixed income (e.g. Asia fixed income, some parts of global credit), inflation protection and “real” strategies (e.g. commodities, infrastructure)