[Sponsored Report] SC Bank presents VIP strategy for investments

Headquarters of SC Bank

The chief investment strategist of Standard Chartered Group, Steve Brice, has developed a “VIP” investment strategy for the second half.

V (Volatility): Managing volatility

Across the globe, macroeconomic uncertainty is still present in the second half, and therefore, it is risky to invest more in equities with high price volatility. So, rather than investing in U.S. dollars or equities or assets that fluctuate, it is better to focus on low-valued asset clusters through alternative investment in order to develop a safe portfolio.

I (Inflation): Defend against the risk of inflation

Since the debt ratio is quite high, inflation is likely. Countries with high debt feel that it is quite a burden but still dangerously overreact to deflationary pressures, even resorting to quantitative relief. Due to this, there is a high chance that inflation could occur, and so we must hedge the inflation risk. Possessing stocks in gold or gold mining is one way to do this.

P (Paid): Receive dividends

This year’s world economy seems likely to remain stable at its current status, but the chance of a deep economic recession cannot be ruled out entirely. Due to such risk and uncertainty, investments that create cash flows are in demand and expected to produce good results. High-yield bonds or high-dividend equities that show good results even in periods of poor economic development can be good targets for portfolios already insulated against market volatility and inflation risk.

“It is difficult for individuals to analyze how world economic changes could potentially impact their portfolios or otherwise set up their individual investment strategies in these uncertain times,” explained Jeong Dae-yong, head of the wealth management department at Standard Chartered Bank.

“Standard Chartered Bank is a global company with the strength of a worldwide network and professional investment consulting teams,” Jeong added.

“Together, we come up with investment strategies and design portfolios for our local clients.”

By Lee Ji-hyun [concordia@joongang.co.kr]