3Q19 Outlook: A Changing World DBS CIO Hou Wey Fook shares how to capitalise on game-changing trends as old business models unravel
Chief Investment Office 26 Jun 2019
Where do we go from here?
Today, we see old business models unravelling and new secular themes emerging. For example, negative interest rates, the pervasiveness of e-Commerce, the ongoing trade war, and the Sustainability agenda will have profound implications on investing. As a result of these changes, a large chunk of the world’s equity capitalisation is under siege. We first saw e-Commerce disrupting retail. Now these new technologies are disrupting the media, telecom, auto, and financial sectors.
For sure, risks abound from these changes, but there are also exciting opportunities. Should we cringe and hold cash? With near-zero rates, this surely is not going to work.
Our call is to engage markets through long-term, multi-asset, and globally-oriented portfolios. The underlying strategy is to “barbell”: This entails stripping away sectors that are under siege from disruption and buying into companies plugged into secular growth themes, alongside holding income-generating assets.
In this issue, we detail exciting trends in cloud computing, automation, the New Defensives, and the Sustainability agenda. Click here to read the full 3Q19 Outlook report.
