For Prashant Bhayani, Asia CIO for BNP Paribas Wealth Management, his three key concerns last year were geopolitical risk, inflation, and recession. With a recession still looming and a high interest rate environment, he shared his market opportunities and risks for 2H23.
“We believe we move from a TINA (there is no alternative to equity) to a TARA market – there are reasonable alternatives. So you can get 5%+ yields in investment grade bonds,” Bhayani explained. “We’re not ready to be overweight high yield, given a looming moderate recession.”
Bhayani explained how BNP Paribas WM see opportunities in Japan on the basis of, among others, improving corporate governance, as well as in South Korea and Taiwan. But in China, he added that more targeted stimulus is needed from the government and central bank, focusing on property, infrastructure and consumption.