DBS Bank stated that their global tactical asset allocation (TAA) for the next 3 months and 12 months is overweight in holding US stocks and Asian stocks (excluding Japan), neutral on Japanese stocks, and underweight on European stocks. DBS Bank believes that a US rate cut is imminent, as pricing in Fed fund futures suggests the first rate cut will likely occur between November and December. With global supply chain pressures easing and macroeconomic conditions remaining strong, the high inflation/bond yield environment is driven mainly by demand. DBS Bank also points out that despite a significant rise in the stock market in the first half of 2024, it will continue to strengthen in the second half due to steady profit margins, positive corporate earnings outlook, low valuations, and the continuous expansion of the US monetary base providing ample liquidity, closely related to the S&P 500 index. Overall, DBS Bank highlights the robust US economy, persistent high inflation prompting the Fed to keep policy rates unchanged. However, the bank expects the stock market to continue to strengthen and remains bullish on bonds outperforming dividend stocks. As for Asian stocks (excluding Japan), DBS Bank states that they will continue to recover in the second quarter of 2024, with the Chinese stock market leading the way. The recent support measures introduced by the Chinese government have alleviated concerns about the impact of the most severe tightening policies. Despite a significant recovery in the Chinese stock market since the beginning of the year, valuations still offer significant discounts compared to developed markets, indicating further room for growth. The current low allocation in investors' portfolios, coupled with positive corporate earnings outlook, will further support the upward trend.