Private wealth clients warned against trying to time the market

Private wealth clients should focus on building resilience in their portfolios through broad diversification, rather than trying to time market exits and re-entries, according to HSBC Private Bank.

In its Q2 2025 investment outlook, the bank highlighted that historical market reactions to geopolitical events were typically temporary and often reversed over time.

It added that the ‘resilient’ global economy continued to provide growth opportunities that helped investors remain invested, while strengthening portfolio resilience to manage geopolitical developments.

The report, Changing narratives, continued opportunity, maintained a preference for growth equities and companies with pricing power and exposure to structural growth themes, especially in the US and Asia.

High net worth (HNW) and ultra HNW clients were also urged to consider selective allocations to hedge funds and private markets.

Building resilient portfolios required more than sectoral and jurisdictional diversification, HSBC Private Bank added, highlighting the role of bonds, currencies, commodities, and multi-asset diversification to reduce concentration risk and improve stability.

Going into the second quarter of 2026, the bank’s priorities were to complement artificial intelligence (AI) with cyclical opportunities; utilise the power of income; manage volatility with alternatives and multi-asset strategies; and ‘tap into’ Asia’s innovation and income.

“Amid the rapidly shifting market conditions, it’s important not to be swayed by pessimistic or exuberant narratives and instead focus on building resilience to accumulate steadier returns,” said HSBC Private Bank and Premier Wealth global chief investment officer, Willem Sels.

“The year-to-date volatility of gold has demonstrated that no single diversifier is perfect, so we continue to diversify our diversifiers across sectors, geographies and asset classes.”

HSBC Private Bank and Premier Wealth chief investment officer, North Asia, Patrick Ho, added: “The combined opportunities in Asia’s innovation and fixed income sectors continue to stand out, and our barbell approach to these two drivers has performed well in recent months.

“This positioning balances the region’s compelling growth prospect with meaningful income potential from high-quality dividend-paying equities, further supported by ongoing corporate governance reforms, which add to the diversification effects in a resilient portfolio.”

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