Significant value can be found in the global equities market by looking out for upcoming catalysts, according to Steve Brice, Chief Investment Strategist at Standard Chartered Wealth Management Group.
Brice told CNBC’s “Worldwide Exchange” that investors should be looking at future monetary stimulus and an upturn in economic fortunes as two drivers for an improved equity market.
“We’re still overweight with global equities and obviously that’s a very difficult sell at the moment given what’s going on. We’ve seen huge value,” he said.
Brice sees a reacceleration for the U.S. in the third quarter and in China he predicts the recovery to start to appear after October. He believes this should therefore enable investors to judge how to play these markets and look for the policy actions to unlock this value.
“One, is significant monetary stimulus, we are looking more to Europe than the U.S. on this front, and, two, is a rebound in the U.S. economic surprises index.” he said in a separate researched note.
“For Asia, China will be obviously key. Economic weakness is clear and the increased rhetoric is promising in terms of policy response.”
He went into further detail by explaining that U.S. equities were his firm’s preferred stocks due to the liquidity and relative resilience. Korea is also an area where he has found good value, with what he sees as cheap stocks and a good technology sector that is linked to the U.S. and Chinese economies.
“Sectorally, we are generally quite defensive liking consumer staples, oil majors and technology within an overarching theme of preferring high dividend yield equities,“ he said.