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HSBC Positive On Growth Equities, Types Of Fixed Income Amid Rate Peak Hopes

Editorial Staff

11 September 2023

There’s an end in sight to US rate rises, which is supportive for parts of the bond market and positive for growth equity stocks, said the “environment of peak rates has also been a significant support for growth stocks, particularly the technology mega caps in the US.” 

As the US economy remains resilient, HSBC thinks this “sets the scene for a broadened equity rally beyond those ‘usual suspects’.”

“While maintaining an overweight on US technology, it sees additional opportunities in US industrials, financials, consumer discretionary and healthcare,” it continued. 

Drilling into specific countries, HSBC said it is taking a “positive stance” on Indian, Indonesian, Mexican and Brazilian equities, and beyond its overweight position on the US equity market. 

Thematically, HSBC Global Private Banking and Wealth said it has added two new US themes to its existing consumer-focused “American resilience” theme, specifically: “US industrial resurgence and innovation” and “opportunities in US healthcare.”

To handle volatility, HSBC said it is adding hedge funds and volatility strategies.