HSBC outlook for the first half of 2022

HSBC Strategy Research report pointed out that if economic growth rebounds in line with or above expectations, it will open the door to "pretty aggressive" policy tightening by the Federal Reserve.

On the other hand, the Fed is unlikely to change strategy quickly if supply chain issues dampen the recovery.

If we see a combination of slower growth and stronger policy tightening expectations over the next six months, the first half could indeed be very bad for risk assets.

Against this backdrop, and in a "sell on rallies" mentality, stock market returns will be meager throughout the year.

Global stock markets have had a rough start to the year, fleeing the more frothy tech stocks in the market, as investors worry about the Fed's more hawkish stance and rising bond yields.

 The value stock such as bank seems cheaper. While strategists recommend sheltering from the limelight in more defensive sectors and countries, such as Swiss stocks, staples and health stocks. They also advise investors no hurry to jump on the value stock immediately, a correction is expected after this rally in the near future.