Markets fell sharply in March as the war in Iran sent energy prices surging, rekindling worries about inflation. The unprecedented supply shock triggered sell-offs across most asset classes, leaving investors exposed to the correction. We interpret this as a sign of markets being led by fear and ignoring fundamentals, which should create opportunities – in both growth and income – for disciplined long-term investors.
World equities fell around 6%. Energy dependency drove performance. Japan and Korea, reliant on energy flows through the Strait of Hormuz, led losses among major markets with double-digit drops, while European indices lost as much as 10%. Equities in the US, a net energy exporter, fared better by comparison and retreated by about 5%.
On a sector level, energy outperformed as the closure of the Strait of Hormuz sent Brent crude close to $120 a barrel for the first time since 2022. Materials and industrials made gains. Interest rate-sensitive assets lost grounds as markets pared back the probability of rate cuts this year. Global bonds fell 2.9% in dollar terms. Gold, which does not generate income, also sold off on changing rate expectations and as traders unwind a crowded trade.
Overall, markets in March detached from fundamentals. Sectors with the strongest earnings growth (e.g. tech) were punished, while those with more modest results (e.g. energy) jumped. The rapid repricing of interest rate expectations also appears to be aggressive (compared to central banks’ cautious tone). These “dislocations” carry potential for patient investors, with attractive bond yields and undervalued stocks.
Income+ Performance
Income+ remains a go‑to for steady income. When bond prices drop, yields rise. On Syfe, Income+ continues to attract investors seeking regular monthly payouts, targeting a 6.0% – 10.0% p.a. dividend yield. Enhance and Pure have had an encouraging 100% achievement rate since inception.
Pure (100% fixed income allocation) edged 1.90% lower, Enhanced (with some equity exposure) was down 2.40%, and the newly launched Max (with stocks, bonds & gold) fell 4.46%. All of our Income+ portfolios provided a valuable anchor in multi-asset allocations during the equity sell-off, highlighting its defensive characteristics.
Pure Individual Fund Performance
Enhance Individual Fund Performance
Max Individual Fund Performance
Outperforming Benchmark
Source: Syfe. Product issuers, data providers. As of 31 Mar 2026 in the denominated currencies. Subject to rounding. Each portfolio may vary due to different times of deposits, withdrawals & weighting.
Looking Ahead
Inflation feels unsettling right now because the usual defences aren’t working, with the “safety” of bonds and gold seemingly fading. But the lesson from history is reassuring: supply shocks eventually resolve, either because demand cools and rates fall, or because supply constraints ease and prices normalise. Either way, markets eventually find a way to recover.
For the disciplined long-term investor, market dislocations can provide significant opportunities – here’s how you can take advantage of them on Syfe:
- Anchor With Income: Don’t give up on the income opportunity. Bond yields (which rise when bond prices fall) are more attractive now. Our Income+ portfolios are offering payouts in the 6.0-10.0% range.
- Strengthen Your Core: Our Core portfolios contain global equities, bonds, and commodities for diversification, helping you stay invested for long-term growth.
- Hold (Just Enough) Cash: Stay flexible, preserve capital, and be ready to deploy when opportunities appear with our Cash+ solutions like Fixed and Flexi.
- Finally, discipline matters: Stay invested and keep dollar cost averaging (DCA), and use enhanced DCA – investing more than usual in significant sell-offs – to capture more of the opportunity.
Now may be a good time to review your portfolio and risk appetite. If you have any questions or need assistance, please feel free to reach out to our Investment Advisory team via email or WhatsApp at +852-57162416.
Here’s to your investing journey,
The Syfe Team
Please note that past performance is not indicative of future results. Investments are subject to market risks, including the potential loss of principal. The information contained herein is for general information and reference purposes only. Information on this website is not and should not be construed as an offer to sell, or a solicitation of an offer to buy any security, investment product or service, nor a distribution of information for any such purpose. It is not intended to form the basis of any investment decision. Investors should not make any investment decision based solely on the information and services provided herein. Before making any investment decision, investors browsing this website should consider his/her own circumstances including but not limited to his/her financial situation, investment experience and investment objectives, and should understand the nature, terms and risks of the relevant investment funds in detail. Unless otherwise specified, all historical figures shown are for illustration purposes only and not necessarily indicative of future performance. All forms of investment carry risks, including fluctuation of prices of fund units and the possibility of loss of the capital invested. Please ensure that you fully understand the risks and costs involved by reading the Risk Disclosure Statement. Some of the fund(s) mentioned above have not been authorised by the Securities and Futures Commission (“SFC”) in Hong Kong. Please seek professional advice from an independent financial consultant where necessary. Syfe Hong Kong Limited (“Syfe”) is a Hong Kong Corporation licensed by the SFC (CE No. BRQ741) under Types 1 (Dealing in Securities), 4 (Advising on Securities), and 9 (Asset Management) for conducting relevant investment activities.
