In our long-term view, we are overweight equities but biased to specific sectors and more granular specific counters. We lay emphasis on telco and growth and our value counters in the banking sector whilst we remain neutral in the manufacturing sector.
The valuations are at record lows and provide significant upside in the long term compared to fixed-income securities. We are underweight income counters as the expectations of higher interest rates in the long term make fixed-income securities a better defense over equities.
In the short term, we are neutral on equities. As the KES continues to depreciate, we see foreigners’ sustained exit would lead to higher volatility. Targeting the dip and tactically exiting on short-term gains would add value to a portfolio. We are underweight income-oriented counters as we feel they don’t match up well to fixed-income securities in the current environment.”
In closing, we stand at the precipice of an eventful 2024. While economic uncertainties may shroud the path ahead, practicing prudent financial planning, diversifying investment strategies, and keeping a watchful eye on market currents can illuminate the way. We invite you to embark on this shared financial journey with CIC Asset Management.
Let us be not merely passive observers, but empowered navigators, charting our course towards economic prosperity in 2024 and beyond.
