Diversification key to tackling looming recession

According to Jeremy Tan, Chief Investment Officer of Tiger Brokers, the reopening of China's economy will provide a boost to trade and investment flows throughout the Asia Pacific region, benefitting Singapore and other APEC countries. China is the second largest economy in the world and has started to ease its zero COVID policies, driving strong economic growth across the region. Tan also believes that countries heavily reliant on exports to China, such as Thailand and Indonesia, will see a normalization of tourism as pent-up demand from China is released.

In terms of investment trends, Tan notes that asset managers are increasingly focusing on ESG-related assets under management. According to a report by PwC, global AUM in this area is expected to grow by a CAGR of 12.9% over the next five years, constituting 21.5% of total AUM. Governments around the world are also dedicated to accelerating their net zero carbon emissions, with China aiming for 2060.

As for tackling the looming recession in 2033, Tan advises investors to have a diversified portfolio and to tilt their asset allocation towards value and quality, focusing on companies with solid fundamentals. He stresses that diversification is the only free lunch in finance, and that these strategies can help investors weather the upcoming economic downturn.

To know more, watch the full interview.