In a more upbeat segment of today’s financial narrative, experts at Standard Chartered Bank believe that two major forces could support global markets: an anticipated monetary-policy easing cycle by the U.S. Federal Reserve, and resilient corporate-earnings momentum.
Here’s how the story unfolds:
- With signs of a global economic slowdown mounting and inflation pressures easing, the Fed has room (and maybe the willingness) to cut interest-rates in coming quarters.
- At the same time, many companies—especially in the U.S.—have been delivering earnings above expectations, giving investors confidence.
According to Fook Hien Yap of Standard Chartered: “Easing monetary policy + earnings resilience = soft-landing scenario for markets”.
What this means for investors: - Fixed-income and credit instruments may benefit from lower rates; consider portfolio re-calibration.
- Equity markets may enter a favourable regime (if earnings hold and policy loosening begins) — but valuations remain stretched.
- Diversification remains essential: while the backdrop may improve, the path is still uncertain.
For Home to Heart readers: this could be an opportune moment to reassess asset allocation, not chase momentum. The long-term market story remains intact, but selective positioning and risk-management will be key.