Investors urged to diversify and brace for higher volatility, Endowus says

Investors should stay invested and diversify their investments while preparing for higher volatility this year, said Hugh Chung, chief investment officer of digital wealth management platform Endowus.

Holding on cash is becoming less attractive as the global economy remains solid and fixed income assets tend to outperform cash after the first rate cut, Chung said at an event. 

It has been a US-centric equity market for the past few years, but investors should look for opportunities in markets like Asia, EU, and Japan to diversify their portfolio, he said. 

Even within the US stock market, diversification can be done through investing in non-tech compounders in the healthcare and consumer sectors, Chung noted.

On the Hong Kong market, Chung believed that the downside of the Hang Seng index is relatively limited and the current valuation is resonable, but he also felt that it might take some time for it to recover.

Aiden He