Standard Chartered strategist sees no reason to be negative on the market

Cautious optimism, but ongoing need for selectivity

Amidst recent market volatility and economic uncertainty, Standard Chartered's chief strategist Dennis Jose remains cautiously optimistic about the long-term outlook for equities.

Jose acknowledges that markets have been challenging in recent months, with geopolitical tensions, rising inflation, and concerns about slowing economic growth weighing on sentiment.

However, he believes that the underlying fundamentals of the global economy remain strong, and that the current market weakness presents an opportunity for investors to accumulate quality assets at attractive valuations.

Reasons for optimism

Jose cites several reasons for his optimism, including:

*

Strong corporate earnings

Corporate earnings have remained resilient despite the recent market volatility, supported by strong consumer spending and cost-cutting measures by companies.

*

Improving economic data

Recent economic data has shown signs of improvement, with key indicators such as employment and manufacturing activity showing resilience.

*

Attractive valuations

Equity valuations have become more attractive in recent months, as the market sell-off has pushed down prices of many high-quality companies.

Need for selectivity

While Jose remains optimistic about the long-term outlook for equities, he emphasizes the need for investors to be selective in their investments.

He recommends focusing on companies with strong fundamentals, solid balance sheets, and the ability to generate sustainable earnings growth.

Jose also advises investors to maintain a diversified portfolio and to avoid chasing short-term trends.

Conclusion

Standard Chartered's chief strategist Dennis Jose believes that there is no reason to be negative on the market over the long term.

While the current market weakness presents challenges, it also provides opportunities for investors to accumulate quality assets at attractive valuations.

By being selective in their investments and maintaining a long-term perspective, investors can position themselves to benefit from the eventual recovery in the equity markets.