Standard Chartered (HKG:2888) said global investors should not go over the top following the US midterm election results and suggested exposure to defense equities and non-hyperscaler corporate bonds, according to a market watch report released on Wednesday.
According to the bank, stocks are expected to deliver 8%-10% returns per year, and it pointed out that bond income remains attractive because of recent spread widening.
Standard Chartered also expects oil to fall to $80 per barrel over the next 12 months, citing expectations of curtailed US defense spending while supply chains adapt to the geopolitical landscape.
The bank also expects the greenback to remain range-bound in the near term and anticipates two more interest rate hikes in the second half of the Trump presidency.
