The US Federal Reserve’s (Fed) FOMC meeting in March conveyed important dovish signals which will continue to set off powerful reflationary tailwinds for risk assets.
Despite risks of near-term volatility, we believe the broader tailwinds behind the market rally remain intact. Bank of Singapore remains overall overweight in equities, and we expect the maturing rally to broaden out from the “Magnificent Seven” into the rest of tech and other sectors, including healthcare, consumer staples and utilities. We also anticipate undervalued markets and mid-small caps to benefit from the inflection point in interest rates.
