SCB Asset Management (SCBAM) recommends investors allocate funds to global and high-investment-grade bonds that enable them to buy Asian and US tech stocks amid ongoing global headwinds and a potential recession.
Fixed-income assets are an attractive investment option, while bond yields have already improved, said Suparat Areewong, SCBAM's executive director and head of marketing strategy and investment products group.
"Supported by China opening up, the economies of many countries have recovered, reporting better than expected economic data. The Federal Reserve signalled that US inflation has started to slow, stabilising the dollar and its depreciation. That is one factor driving capital flows into Asia, especially China, Thailand, South Korea and Taiwan where the economy has a steady growth," she said.
"It's time now for investors to gradually buy into stock markets and accumulate fixed-income assets to diversify risks and grab opportunities to generate returns."
SCBAM has a positive view of countries witnessing economic recovery, such as China and Thailand, thanks to tourism's recovery and economic stimulus measures introduced by the governments.
To serve this trend, the firm offers SCB All China Equity (SCBCHEQA), which features selective investments in individual Chinese stocks in various industries that have long-term growth potential.
In addition, it recommends funds that focus on sustainability and corporate governance of Thai stocks.
The SCB Thai Equity CG Fund invests in the stocks of firms on the Stock Exchange of Thailand with good business fundamentals and corporate governance, generating stable returns in the long run.
SCBAM also recommends investing in good quality debt instruments such as government bonds that give good returns during interest rate hikes.
SCB Emerging Markets Bond Fund invests in the master fund JPMorgan Funds -- Emerging Markets Investment Grade Bond Fund, which focuses on quality grade bonds of emerging markets, and diversifies risks to various industries.
"This is the moment to build a balanced investment portfolio that is supported by the growth of investment funds and stable cash flows," said Ms Suparat.
