'Investors Need To Innovate In Fast-Paced World'

Doha, Qatar: Investors need to be agile to navigate global uncertainties to manage short-term risks and achieve their long-term investment goals, according to HSBC Global Private Banking's Investment Outlook.

The report, Innovate or Stagnate, sets out how increased trade frictions and rapid AI-led innovation are among the major changes that are challenging markets, so high net worth and ultra high net worth clients need to adapt quickly to this fast-evolving world.

In Q1, the bank upgraded its outlook for Chinese stocks to positive and raised its allocation to eurozone equities to neutral. It maintains its medium-term optimism in the US but diversifies across countries and sectors as opportunities spread. It further diversifies its portfolio strategy to address tail risks through high-quality bonds, hedge funds and gold.

Its four priorities going into Q2 2025 includes Global AI adopters and electrification: Technology-driven earnings growth is moving from AI enablers to AI adopters. Rising energy consumption is driving investments in electricity generation capacity and the electric grid.

Multi-asset and active fixed income strategies: Diversification across asset classes, geographies and sectors offer global opportunities for improved risk-adjusted returns. The busy news flow lends itself to active managers.

Willem Sels, Global Chief Investment Officer at HSBC Global Private Banking and Wealth, said:“While the global economy is facing challenges, it remains resilient as government and corporate spending is supporting economic activity, while innovation in AI is boosting productivity. Global central banks are also assisting by maintaining a monetary easing bias.

Georgios Leontaris, Chief Investment Officer, Switzerland and EMEA, HSBC Global Private Banking and Wealth, said:“Exceptionalism has often been associated with the US economy in recent years, however the same characterisation can be made about the non-oil economy in GCC countries, which is up almost 20% compared to pre-COVID levels led by strength in Saudi Arabia and UAE. Solid fundamentals and ample sovereign wealth buffers provide a cushion against external uncertainties. Structural reforms and multi-year investment programmes in infrastructure, technology and hospitality remain visible. We have recently upgraded our view on UAE equities as part of our drive to broaden geographical diversification, with undemanding P/E multiples offering a good entry point for international investors.”

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