We Are Constructive on the Equity Market, Says DBS Group’s Hou

The video discusses market attractiveness, focusing on being overweight in US and Asia, particularly China, while underweighting Europe and Japan. It highlights the importance of equities due to low returns in cash and bonds, emphasizing thematic investment in secular trends. The bond market is analyzed, noting low returns despite interest rate cuts. The video concludes with investment strategies, advocating for engagement in equities and income assets like real estate trusts.

Why does the speaker suggest being overweight in US and Asia markets?

• Because these markets have the highest bond yields

• Because of the relative attractiveness and growth potential

• Due to high inflation rates in these regions

• To balance the underweight position in Europe and Japan

What is a significant trend in the bond market mentioned in the video?

• Bonds are offering high returns due to high coupons

• Bonds are the only viable investment option

• Negative-yielding bonds are becoming more common

• Investment-grade bonds are yielding above 5%

What are some of the secular themes that the speaker suggests focusing on?

• Short-term market fluctuations

• E-commerce and automation

• High-yield bonds

• Currency exchange rates

How do interest rate cuts affect bond returns according to the speaker?

• They increase the coupon rates significantly

• They lead to higher capital gains but low total returns

• They make bonds the most attractive investment

• They have no impact on bond returns

What is an example of income equities mentioned in the video?

• European Corporate Bonds

• Singapore REITs

• Japanese Government Bonds

• US Treasury Bonds