Investors Need to Be Disciplined on Valuation: Wong

The video discusses the current state of global markets, focusing on earnings guidance, inflation, and monetary policy. It highlights the risks associated with opaque earnings guidance and inflationary pressures. The discussion also covers the impact of the yield curve on equity markets, investment opportunities in defensive sectors like global healthcare, and regional perspectives on China and emerging Asia. The importance of disciplined valuation and quality in investments is emphasized.

What are the two main risks identified in the global markets for this year?

• Inflation and rates risk, and earnings growth conviction

• Supply chain disruptions and labor shortages

• Geopolitical tensions and currency fluctuations

• Technological advancements and market saturation

How has the Monetary Authority of Singapore responded to inflationary pressures?

• By lowering interest rates

• By implementing stricter trade regulations

• By raising the rate of appreciation of its policy band

• By increasing government spending

What is the impact of a flattening yield curve on growth stocks?

• It is detrimental to growth stocks

• It has no impact on growth stocks

• It is beneficial for growth stocks

• It causes growth stocks to underperform

What is the recommended investment strategy in the current economic environment?

• Focus solely on growth stocks

• Avoid equities altogether

• Invest in unprofitable tech companies

• Balance between growth and value with a focus on quality

Which sector is highlighted as particularly attractive due to its discount to the market?

• Real estate

• Energy

• Global healthcare

• Technology

What is the general outlook for Asian economies compared to other parts of the world?

• They are lagging behind in recovery

• They are earlier in the cycle of recovery

• They are experiencing a recession

• They are unaffected by global trends

Why might the value trade be favored in China and across Asia?

• Due to a strong dollar

• Because of economic adjustments and recovery cycles

• Because of high inflation rates

• Due to political stability