Given continuing uncertainties in the global economy, investors need to take into account the possibility of different, evolving scenarios to guide their investment decisions.

Mr Steve Brice, the Chief Investment Strategist, Standard Chartered Bank, said: “Take the scenario in the US as an example: it is not clear when and in what form its fiscal stimulus will pass through the legislature.

“Although one can easily assume that a fiscal stimulus is a positive move in a growth-starved world, there is also the possibility that increased government spending and tax cuts feed through more to rising inflation than to faster growth, with the US already approaching full capacity,” he added.

Market sentiment towards a reflationary scenario is also quickly gaining traction, and a continuation of this momentum is contingent on the implementation of fiscal policies that would support this scenario.

He said the sustainability of such a trend was still unclear and even if it was, a smooth process is unlikely.

Mr Gautam Duggal, Regional Head of Wealth Management for Africa, the Middle East and Europe and Head of Wealth Management for the UAE, Standard Chartered Bank said: “Against the global backdrop of the four key pivots, a shift towards greater use of fiscal policy, a more reflationary environment, increasing protectionism and rising multi-polarity – uncertainties surrounding the outlook are likely to rise.”

He said as such, it was critical investors in the region take a scenario-based approach when it came to reviewing investment opportunities.

He noted that: “Our approach of proactively accessing and assimilating diverse sets of information and perspectives provides a more rounded view of the investment outlook, and helps to shape the advice we offer to our clients to navigate the increasing challenging investment landscape.”