MAINTAIN YOUR COURSE, but trim the sails and keep a sharp lookout for signs of an impending storm. In a nautical nutshell, that is the advice of the equity analysts canvassed by Net Worth. They remain positive about the prospects for share prices in the region as investors sail into the second half of the year.
'A key investor concern in the first half was whether the economic slowdown in the US would gain momentum. But we are positive and expect a more material re-acceleration of US growth towards the end of year, and believe that equity markets in the region will reflect this continuing growth momentum,' says Fan Cheuk-wan, head of Asian equity research for the private banking division of Swiss investment bank Credit Suisse.
But in the near term, brace for a choppy ride as some overstretched markets undergo modest, temporary corrections.
Ms Fan's view that the global equity bull run will end the year intact despite a few hiccups on the way, and that investors should therefore keep faith in their share portfolios, is widely echoed by other market analysts and economists who spoke for this edition of Net Worth.
'In Asia we see continuing strong momentum and economies that are increasingly decoupling from the US and can therefore better cope with a US slowdown. As a result Asia remains in relatively good shape, with strong corporate earnings growth,' says Yonghao Pu, managing director and chief regional economist, UBS Wealth Management.
And this is a view shared by Eleanor Wan, chief executive of Allianz Global Investors Hong Kong.