Investors, confounded with a growing list of uncertainties, are not in a gambling mood. Many prefer to stay on the sidelines and let the volatile and uncertain mix of geopolitics, pandemic, surging inflation, supply chain woes and the likes wear themselves out before they risk additional capital.
According to Credit Suisse, market sentiment is now “highly depressed”, and the bank has turned “structurally more cautious” on equities.
Nevertheless, Credit Suisse is still broadly positive about prospects for Asia. For one, it recently upgraded its rating on China from “market weight” to “overweight”.