Getting out of equities is one way to go, but structured products are also being touted
The majority of investors who have been trading in equity markets have reduced their leveraged positions, and discretionary portfolio managers are advising clients to reduce exposure to equities.
'We have cut down equity exposure in our client's portfolios,' said Ivan Leung, chief investment strategist in Asia for JPMorgan Private Bank in Hong Kong.
'We have rotated them into equity-linked structured products which have capital protection.
'We have decided on this because we don't see much upside in the stock market at present.'
Mr Leung said that the bank had used more plain equity-linked structured notes with soft protection in discretionary portfolios in the past nine months.
The bank is advising more cautious clients to avoid exotic products and consider plain structured products such as those with short volatility structures.