HSBC Private Bank has outlined four areas it is prioritising in its investment strategy as we approach the midway point of the year.
In its Q3 2026 Investment Outlook, the firm updated clients on its expectations for the rest of the year and the key trends it is watching.
The private bank remains ‘optimistic’ about the resilience of the global economy and expects volatility to be manageable.
It noted lessons from the pandemic shock and shifting trade dynamics have been learnt by governments and businesses, and they have been diversifying supply chains, trade relationships and energy sources accordingly.
With this context in mind, the first of the four priorities is to ‘invest in the AI-led future’.
The firm said strong earnings surprises, easing monetisation concerns and attractive valuations after the software sell-off present opportunities in semiconductors, data centres and AI adopters.
Second, the bank wants to ‘position for security and energy independence’. Geopolitical shifts are accelerating efforts to diversify energy supply, expand electrification and increase grid investment, it noted.
The third priority is to ‘build portfolio resilience with multi-asset strategies’. HSBC said bonds, gold, alternatives and currency diversification remain ‘core building blocks’ in this regard.
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The fourth of the quartet is to ‘tap into Asia’s innovation and income opportunities’. The firm said a barbell strategy can capture Asia’s innovation-led investment cycle while balancing with income opportunities, and this can be paired with a geographical overweight in mainland China, Hong Kong, Singapore and South Korea.
Willem Sels, global chief investment officer (pictured), HSBC Private Bank and Premier Wealth, said: “Volatility is here to stay as global markets react to fast-moving risks and headlines.
“The priority is to stay disciplined with resilient and diversified multi-asset portfolios that can withstand short-term uncertainty, while keeping sight of longer-term opportunities emerged from structural growth trends.”
Patrick Ho, chief investment officer, North Asia, HSBC Private Bank and Premier Wealth, added: “As investment in AI accelerates globally, Asia is well placed to benefit given its leadership in semiconductors and rapid progress in large language models.
“Beyond AI, investors can also find a broadening opportunity set through income potential in bonds, alongside continued improvements in corporate governance reforms across Japan, South Korea, mainland China and Singapore.”
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