This year has entered its final quarter. The stock market has been volatile. On September 30, the S&P 500 index rose 0.42% to close at a record 5,762.48 points. Investors continued to bet on topics such as artificial intelligence and the potential for interest rate cuts. There is renewed interest in the Chinese market, with the CSI 300 blue-chip index soaring 8.5% on Monday, its best one-day gain in 16 years. Meanwhile, the benchmark 10-year U.S. Treasury yield is hovering around 3.79%. Rising tensions and fears of an economic slowdown. “These factors may bring volatility to the market, making the fourth quarter a period worth watching closely,” Kevin Teng, CEO of Wrise Private Singapore, told CNBC Pro on September 30. CNBC Pro asked market experts what they expect before the end of the year. How to position. “Taking Advantage of Changing Market Dynamics” The fourth quarter is starting to get hot with the central bank’s interest rate cutting cycle. The Federal Reserve cut interest rates by 50 basis points on September 18, and the People’s Bank of China cut both the seven-day reverse repurchase rate and the bank deposit reserve ratio on September 24. This phenomenon has reduced the attractiveness of investors. Allocation of asset classes, Teng said. The wealth manager, which serves ultra-high-net-worth individuals in Asia, the Middle East and Europe, said he is now “focused on short-term cash investments”. One of his favorite areas is the U.S. stock market – thanks to the Federal Reserve’s “accommodative policies” and “continued momentum in high-growth industries such as artificial intelligence.” “In particular, we remain bullish on generative AI and companies such as Nvidia, which continue to see strong demand from data centers and AI-driven applications,” Teng explained. Other themes he likes include real estate and consumer staples, which “are expected to benefit the most from lower borrowing costs.” Teng is bullish on China and Hong Kong-listed stocks, adding that his firm upgraded the stocks to overweight from neutral following the announcement from China’s central bank last week. “We believe the scale and focus of these measures, particularly the targeted liquidity injections, address the critical issue of insufficient domestic capital flowing into China’s equity markets,” he explained. “With the new policy framework in place, we expect The market will shift towards greater participation, which will boost stock market performance. The combination of monetary easing and strong support for the stock market marks a turning point, giving China and Hong Kong stocks significant upside potential. In this context, Teng will do so. Build a $50,000 portfolio: $30,000 in U.S. index exchange-traded funds that track the Dow, S&P 500, and Nasdaq, $10,000 in global active and short-term fixed income funds. market instrument in order to participate in the stock market decline. “We expect greater volatility in the United States, so I recommend buying on dips and remaining long on the stock market this year,” Teng said. The wealth manager, who was previously executive director of Morgan Stanley Private Wealth Management, added that he had also reduced allocations to gold and alternatives to “take advantage of changing market dynamics.” Watch out for laggards Like Teng, Lombard Odier’s Nannette Hechler-Fayd’herbe is bullish on stocks but likes “laggard” markets. The Swiss bank’s head of investment strategy, sustainability and research and chief investment officer for Europe, the Middle East and Africa told CNBC Pro that the U.K. is one such market because of its “attractive valuations and forward exposure to emerging markets.” P/E ratio”. . “UK equities are at an interesting valuation point and we think this is an attractive market given the potential upside from recent positive economic surprises.” Hechler-Fayd’herbe’s comments came as the UK The central bank kept its hawkish interest rate unchanged, and the pound exchange rate jumped to its highest level in two and a half years on September 23. “Part of this lag may be due to how strong the pound has been. For companies exporting in local currencies, this means their revenue strength has weakened,” she explained. “International investors who hold UK stocks without currency hedges either win on currency strength or win on the stock market.” Other markets In addition to the UK, Hechler-Fayd’herbe also sees emerging markets such as Taiwan and South Korea potential. Taiwan will benefit from “strong long-term tailwinds” amid growing global demand for semiconductors, she said. In South Korea, she expects a “meaningful recovery” in stock market earnings per share over the next six to 12 months due to “the continuation of the memory upcycle.” Elsewhere in Asia, Heckler-Faidheb is watching Japanese stocks, particularly small and mid-cap stocks, as the country is in a “geopolitical sweet spot” and benefits from rising inflation and economic stability. Looking ahead, she believes the country’s “domestic businesses are rediscovering pricing power and a gradual monetary tightening cycle should help banks and insurers’ prospects.” Heckler-Faidheb added: “Momentum for corporate reforms remains strong and will be a long-term driver.”
Professionals explain how to invest in the fourth quarter | Real Time Headlines
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