Almost three-quarters of investors in Singapore believe they are entering a new era of monetary policy and market behaviour based on increased inflation and interest rates, according to a survey.
According to the Schroders Global Investor Study in 2023, is also in stark contrast to the previous year’s finding that 42% of Singapore’s investors believed the market challenges of the time were just a blip and expected a “quick return to the more benign, low inflation, low rates environment”.
As a result of the continued inflationary pressures, half of the investors have adjusted their strategies and a third intend to do so shortly.
The study also showed that those respondents who labelled themselves as “experts” reacted much quicker to the inflationary challenges, with 85% having already adapted their strategies. The figure was more than twice the number of “beginner” investors, 41% of which have yet to make any adjustments.
“In an investment landscape being increasingly shaped by the ‘3Ds’ of deglobalisation, decarbonisation and demographics, investors are still getting used to the fact that higher inflation and higher interest rates are here to stay,” said Johanna Kyrklund, Schroders’ group CIO and co-head of investment
“Every asset has had to reprice to compete with a yield on cash in the bank. Valuation matters once again,” Kyrklund added. “Compared to the last 15 years, you may need to be more flexible and active in the way you invest. The results showed that some investors are adjusting quicker than others.”
The survey interviewed more than 23,000 people from 33 different global locations.
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