2021 Year End Market Outlook

Major investment trends to consider in the last quarter of 2021 are:

1. The Big Picture - Mid-Cycle Opportunities

• After a flash recovery, growth consolidation is in store - leaving scope for mid-cycle opportunities.
• Accommodative policies and productivity gains will lead to strong post-pandemic growth rates.
• In equities, go for growth and add a defensive touch - we upgraded Swiss stocks and reiterated other calls like Healthcare, IT, financial, and dividend stocks for income.
• As Chinese government intervention remains uncertain, we shift our focus to Asian quality compounders outside of China.

2. Fixed Income - Be Active, Be Selective

• We believe that active duration management is the key to mastering the sharp moves in bond yields driven by high uncertainties and rapid changes in investor positioning.
• In a mid-cycle slowdown, the tide will no longer lift all boats even as upgrades should still outplace downgrades. We recommend sticking to moderate credit risk overall but becoming more selective on a single name level.

3. Next Generation - In Focus Now

• A forward-looking investment approach is paramount to identifying the winners of longer-term structural trends.
• We focus on three attractively valued themes that we think have the wind at their backs:
  1) Circular economy
  2) Healthy living
  3) Future mobility

4. Resilient Companies - The Secret of Success

• Companies across the world are exposed to the winds of change sweeping through their markets.
• We take a closer look at those companies whose robust approaches enable them to survive and even thrive in the harshest environments.
• These resilient companies, found across industries, demonstrate high pricing power; a growth pattern that is largely independent of the economic cycle; and generally, disruption-free supply chains.

Mr. Caceres concluded, "Based on these four trends, we believe that there are still investment opportunities during the current situation, especially in high growth segments and stocks revolving around future world trends. However, investors should diversify their investment risk in various products. SCB Julius Baer has an Expert Advisory Team with investment expertise and experience offering wealth management advice meeting Julius Baer's standards. Our teams are ​​ready to provide advice and support our clients with managing their portfolios with flexibility to create sustainability in the long term,".

About SCB Julius Baer Securities Co., Ltd.

As a strategic joint venture company between Siam Commercial Bank (SCB) and world-renowned Swiss private banking group Julius Baer, SCB Julius Baer Securities Co., Ltd. was established to offer exclusive advice and superior services meeting the needs of high-net-worth investors in Thailand. This cooperation combines SCB's expertise and strength in Thailand with Julius Baer's global wealth management expertise to fulfil the financial goals of Thai investors in Asia.

For more information, please call 02-098-9999 | www.scbjuliusbaer.com | [email protected]

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