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Take more risks & put cash to work: HSBC’s advisory for millionaires

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Given the anticipated volatility, HSBC also suggests considering alternatives and multi-asset strategies

According to a new analysis, millionaires are now better positioned to take on more risk in order to increase the returns on their investments.

High-net-worth and ultra-high-net-worth individuals are advised by HSBC Global Private Banking in its Q2 2024 investment outlook that many opportunities are available in the markets to “put cash to work.”

“HSBC Global Private Banking is advising (rich) clients to consider taking on more risk and put their cash to work as the investment environment has become more attractive,” Zawya reported.

The bank suggests that putting more emphasis on high-quality stocks and bonds than ones with low valuations may result in higher returns when it comes to investing.

Bonds And United States Equities

The advice is to lock in appealing bond yields and lengthen bond duration, while also expanding exposure to United States equities.

The forecast predicts the first US Fed rate cut of 2024 will likely occur in June, with expectations for the US equity rally to encompass companies in various sectors beyond technology.

Given the anticipated volatility, HSBC also suggests considering alternatives and multi-asset strategies.

Other Options

Given that the non-oil sectors continue to benefit from structural reforms, favourable demographics, and ambitious infrastructure programmes, investors in the Gulf Cooperation Council (GCC) region will still see opportunities for great returns.

Diversification and consideration of other markets, such as India, Indonesia, South Korea, and Japan, are excellent Asian strategies, as China has not yet revealed its stimulus plans.

“We think our investment priorities find the right balance between exploiting the opportunities while focusing on quality and limiting exposure to areas where risks are mispriced,” Willem Sels, Global Chief Investment Officer at HSBC Global Private Banking and Wealth said.

Meanwhile, HSBC is claiming bragging rights by tokenizing gold for regular investors in Hong Kong. The HSBC claim, it is the first bank to develop a blockchain-based real asset targeted at the retail market.

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