Private banks call for 'neutral' weighting on equities, but favour Asia ex-Japan stocks amid turmoil

PRIVATE banks have dialled down equity weightings to "neutral'' at best, from overweight at the start of 2022, as escalating oil prices dim the outlook for global growth and raise fears of stagflation.

Strategists have also recommended a slew of hedges - such as energy stocks and gold, against the risk of a protracted war between Russia and Ukraine.

With equities on a neutral weighting, strategists appear mindful to ensure that clients stay engaged, as the memory of last year's market trajectory remains fresh. Stocks plunged sharply in March 2021, but this was followed by a sharp and sustained rally through the year.