The next place for global investors is in U.S. equities, said Vasu Menon, vice president of wealth management Singapore at OCBC Bank. He shared his market outlook.
“In the U.S., we see the recovery kicking in and we’ve moved from underweight to neutral,” Menon told CNBC.
Menon said he is bullish on the equity markets—especially Asia, ex-Japan because he expects "a lot of upside" and sees valuations that are "reasonable." He is also medium-term bullish on the commodity sector.
“We suggest investors put as much as 70 to 80 percent of their money into equity markets, if they have the appetite for risk,” he advised.
Menon said investors have been cautious on the markets, despite positive corporate earnings news.
“Markets have been expecting a lot of companies to report pretty good earnings and so, to some extent, it’s been discounted and the markets have had a good run for the last 4 to 5 weeks, so it’s normal for markets to take a breather,” he explained.
“And the news flow out of China and Greece are providing a good excuse to take some money off the table.”
“But I wouldn’t worry about it, because we’re still positive in the medium-term.”
- Watch Menon's Previous Appearance on CNBC (Apr. 15, 2010)
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More Market Intelligence:
- This Market Recovery Is Genuine: Chief Economist
- Long-Term Bond Holders Are 'Going to Get Massacred'
- 9 Winning Dividend Stocks: Strategists
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CNBC Data Pages:
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CNBC Slideshows:
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Thursday Earnings After the Bell:
Amazon.com
American Express
Microsoft
Capital One
Western Digital
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Disclosures:
No immediate information was available for Menon or his firm.
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