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With the recent moves in the markets and the depreciation of the Philippine peso, we recommend a reduction in the allocation for equities and peso-denominated investments. For long-term investors, however, equities may still be a strategically good option, though the short-term to medium-term outlook remains in limbo over the next 12 months. Recession fears in developed markets and reduced business profitability brought on by soaring inflation have put a damper on stock market returns. With markets pricing in rising interest rates, the upside potential of fixed income investments seems to be much more attractive. We advise clients to keep a moderately aggressive stance over the next 6 to 12 months. Periodically monitoring the very fluid conditions in the market is needed.
2023 Metrobank Forecast | 2024 Metrobank Forecast | |
---|---|---|
GDP
|
5.5%
|
6-7%
|
Inflation
|
6.0%
|
4.6%
|
Target BSP Overnight Rate
|
6.25%
|
5.50%
|
USD/PHP Trend
|
55.1
|
54.4
|
DISCLAIMER: The report above is circulated for general information only. The opinions expressed are solely those of the contributors and are based on prevailing market conditions and public sources that are believed to be reliable. Metrobank and the report contributors/support staff do not make any guarantees or representation as to the accuracy, completeness or suitability of this report. The report may contain confidential or legally privileged material and may not be copied, reshared, redistributed, or published without prior written consent. Opinions or strategies contained in this publication may change without prior notice and should not take the place of professional investment advice or sound judgment on the part of the reader.