In its Q4 2024 investment outlook, An Optimist's Guide to a Shifting Landscape, HSBC Global Private Banking indicates that while the U.S. economy is slowing, an imminent recession is not anticipated to be on the horizon. Investors continue to look for buying opportunities, supported by the prospect of rate cuts, potential corporate earnings improvement, nearshoring/re-industrialization and innovation boosting productivity and valuation opportunities.
HSBC Global Private Banking's four investment priorities are:
- Targeting earnings endurance: Companies have shown they can deliver strong earnings despite moderate global growth. While the technology sector continues to appeal, other sectors are proving attractive alternatives to the tech mega-caps.
- Putting cash to work: The global rate-cutting cycle is well under way, and cash is getting less attractive. We recommend locking in bond yields on quality credit before they fall further, and using multi-asset strategies to tap into a broad opportunity set.
- Bridging uncertainty: The U.S. election, global monetary policy and geopolitical risks could trigger some market uncertainty in the coming months, but volatility strategies and hedge funds may protect against the downside while remaining invested.
- Diversifying in Asia: Asia's diverse and expanding capital markets offer attractive prospects for diversification, with promising opportunities from its resilient growth leaders and quality bonds, particularly in Japan, India and South Korea.
Willem Sels, Global Chief Investment Officer at HSBC Global Private Banking and Wealth, said: "It's easy to feel nervous about the markets, but we are optimistic that diversified portfolios will continue to do well. While the landscape is shifting, the opportunity set is rich and diverse. A global mind set and a multi-asset approach are the way to go."
Jose Rasco, Chief Investment Officer for the Americas at HSBC Global Private Banking and Wealth, said: "Despite anticipated market volatility in the coming weeks, we are optimistic about the U.S. economy and believe we are in the early stages of a technology revolution, furthering our theme of staying invested."
Notes to Editors
About HSBC Global Private Banking
HSBC Global Private Banking helps clients manage, grow and preserve their wealth for generations to come. Its network of global experts helps clients access investment opportunities around the world, plan for the future with wealth and succession planning, manage their portfolio with tailored solutions, and find the right support for their philanthropy. www.privatebanking.hsbc.com
About HSBC Holdings plc
HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 60 countries and territories. With assets of US$2,975bn at 30 June 2024, HSBC is one of the world's largest banking and financial services organisations.
HSBC Bank USA, National Association (HSBC Bank USA, N.A.) serves customers through Wealth and Personal Banking, Commercial Banking, Private Banking, Global Banking, and Markets and Securities Services. Deposit products are offered by HSBC Bank USA, N.A., Member FDIC. It operates Wealth Centers in: California; Washington, D.C.; Florida; New Jersey; New York; Virginia; and Washington. HSBC Bank USA, N.A. is the principal subsidiary of HSBC USA Inc., a wholly-owned subsidiary of HSBC North America Holdings Inc.
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