Investors should prepare for the unexpected by developing portfolios that are resilient to political and market surprises, HSBC Global Private Banking has told its high net worth (HNW) and ultra HNW clients.

In its latest Investment Outlook, the bank warned that investors were likely to continue seeing two-way market volatility amid a high volume of US policy announcements.

Despite this, HSBC highlighted that there were plenty of opportunities, with valuations on many asset classes now more attractive than a few months ago.

The bank urged investors to look at quality stocks and bonds, areas with policy support, and opportunities supported by structural trends.

It argued that building a resilient portfolio that can take advantage of longer-term opportunities while managing short-term volatility was the right path to follow.

HSBC Global Private Banking’s priorities going into Q3 2025 including rebuilding a diversified regional and sector equity exposure, as a broader exposure helped widen the opportunity set and ease the impact of quick market reversals.

Capturing opportunities in artificial intelligence (AI) adoption was also a priority, with its focus switching from tech hardware to software and AI adopters that benefit from AI proliferation and commercialisation.

The bank’s other priorities were mitigating currency and portfolio risks through a multi-asset approach, alternative assets, and volatility strategies, and tapping into Asia’s domestic resilience and structural growth.

“While we expect to see lower US growth this year, the economy should not slide into recession or stagflation,” commented HSBC Global Private Banking and Premier Wealth global chief investment officer, Willem Sels.

“Earnings growth will likely be in the single digits, but expectations have already been reduced, and valuations are reasonable at around historical averages.”

HSBC Global Private Banking and Premier Wealth chief investment officer for Asia, Cheuk Wan Fan, added: “Reduced tail risks of US-China decoupling should help stabilise business sentiment and investor confidence in Asia.

“But given the outcomes of trade talks remain uncertain, we expect Asian policymakers will continue to provide further monetary and fiscal stimulus to boost domestic consumption. We favour domestically oriented sectors and quality industry leaders.”

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