Home Capital Tong's Portfolio

Rebalanced…reduced US and increased Chinese equity exposure

Tong Kooi Ong and Asia Analytica
Tong Kooi Ong and Asia Analytica6/2/2022 06:59 PM GMT+08  • 9 min read
Rebalanced…reduced US and increased Chinese equity exposure
Photo Credit: Bloomberg
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

It now appears inevitable that inflation will rise higher and persist for far longer than most expected even just a few months back. Prices are rising across the board worldwide, driven by both supply and demand issues.

On the supply side, pandemic disruptions continue to linger, compounded by spillover effects from the Ukrainian war and, increasingly, export bans by countries for critical food supply. Demand, on the other hand, is still relatively robust, especially in the US, spurred by the reopening of economies. As we have articulated previously in this column, US households, on average, are in good financial shape. Household debts remained near the lowest levels in nearly two decades. Consumer spending is buoyed by massive government handout and trillions in excess savings during the pandemic as well as the positive wealth effect from years of rising asset prices, since the global financial crisis. For now, consumers appear comfortable to continue spending, outpacing inflation, and dipping into their savings.

Hardly a day goes by without inflation hogging global news headlines. More and more, we are reading of that dreaded word — stagflation. For some, the current environment harks back to the 1970s, when rapid inflation necessitated high interest rates, resulting in anaemic economic growth and rising unemployment that persisted for many painful years.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.