Given the persistently higher global inflation rate, semiconductor shortages, supply chain disruption and higher commodity prices:

Where should investors invest now?
What is asset allocation and why does it matter?
Does a diversified investment portfolio mean a mediocre return?

Simply put, the act of rebalancing ensures that your portfolio stays within your desired allocation over time. Rebalance your portfolio as we discuss the opportunities in the market with Audrey Goh, Senior Cross Asset Strategist, Standard Chartered Bank.

Investment Advisor
Standard Chartered Bank Malaysia

Senior Cross Asset Strategist
Standard Chartered Bank Singapore

While tapering could potentially create temporary volatility, strong economic data, better than expected earnings growth and ultra-low policy rates remain the key drivers for financial market. Audrey also discussed how asset allocation can impact your portfolio’s performance.

Here are the key takeaways, or you can catch the replay below:

1. You can still make money even when you invests at the peak, as long as you stay invested throughout – Case study has shown that if an investor invested at each cyclical peak (right before the market sell-off) between the March 1973 to August 2021 and remained invested throughout the years, he or she could still achieve positive returns in excess of 9% p.a. It is never about timing the market but time in the market.

2. Reduce portfolio volatility through asset allocation – Asset allocation means distributing investments across asset classes such as equity, fixed income, gold and alternatives. Each asset class does not respond to the same market force and therefore your portfolio is in a better position to counter market fluctuations. However, there is no one-size-fits-all asset allocation as risk tolerance, time horizon and age each play a role in determining your asset allocation.

3. Focus on long-term goals and do not rebalance solely based on recent market moves – Do not let your emotions dictate investment decision and check if investment allocation still matches your risk tolerance. Regular savings plan (or dollar cost averaging) offers a disciplined approach and less emotional ride to the market. The key to success is to keep to the plan regardless of market sentiment.

Invest through SmartDirect on your SC Mobile for long term structural growth themes in Manulife Global Energy Transition and Principal Next G Connectivity