SINGAPORE (July 30): The possibility of an impending bear market means that investors should be risk-on and prepared to hedge against short-term pullbacks. They should continue to invest in equities, particularly growth stocks, as well as companies with healthy balance sheets, say fund managers.

Lim Chia Wei, portfolio manager at Affin Hwang Asset Management, is of the view that quality stocks with high returns on investment capital and stable cash flow could help long-term investors trudge through the market conditions. “It is time to be more prudent and selective. Let’s say that in the past you did not mind buying a highly indebted company because it was delivering decent growth and could cover its debt obligations. This year, you have to be more prudent,” he says.

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