New year, new optimism

WHAT a difference a few weeks make! Following recent news of global vaccine rollouts and positive economic growth in China in 2020, market optimism appears to have risen a few notches.

To be sure, the coast isn't completely clear on the Covid-19 front, where new strains of the virus may yet pose severe setbacks and throw into question the efficacy of vaccines.

Markets, however, are forward-looking mechanisms and the consensus among market strategists and fund managers is clear: Equities are the favoured asset class for a few reasons - an expected global economic rebound in 2021, albeit uneven; continuing monetary policy support plus fiscal measures; and very low bond yields, among others.

Popular themes for 2021 include exposures to China and Asian equities, an ESG (environmental, social and governance) wave in bond issuance and weakness in the US dollar. Investors would be wise to tread prudently - that is, be diversified, go for quality assets, and keep in mind our Roundtable panelist John Woods of Credit Suisse's advice: "Time in the market beats timing the market."

In this edition, we profile the efforts of entrepreneur Wong Joo Seng, Spark Systems' founder, to further entrench Singapore in the FX global trading map, and Jia Foundation's efforts to serve as a catalyst for good. We wish you a happy and rewarding 2021!

Genevieve Cua WEALTH EDITOR