The investment policy of Collins Stewart Wealth Management will focus on Asian growth with the broad view that the global economy will expand at a slow and steady pace, said Nigel Cuming, chief investment officer at the firm.

The market will follow what Cuming calls a “two steps forward, one step back” pattern, settling into a cycle of big leaps and small contractions that will create gradual growth.

Cuming maintains that Asia is still a sure bet, particularly looking beyond the region’s stocks markets.

“We remain firm believers in the Asian and emerging market growth story, but similarly we must recognise that this is no longer as contrarian a position as it once was and particularly when we maintained this weighting at the beginning of 2009,” Cuming said in an investment note. Collins Stewart sees alternative ways of capitalising on the superior growth profile of the "tiger economies" such as investing in specific sectors. Areas that are likely to outperform benchmark indices are healthcare and technology, according to CSWM.

“We can identify growth opportunities arising from increased expenditure towards this area across the developing world. As a percentage of GDP, healthcare spending accounts for just 5 per cent in China, but will clearly grow meaningfully as the healthcare insurance programme is extended to cover 90 per cent of the entire Chinese population by 2011, up from under 20 per cent of urban employees in 2001,” said Cuming.

Another positive development in China is the introduction of tightening measures to cool down the economy in the face of rapid expansion, according to the wealth management firm. Collins Stewart thinks these measures will ultimately help stabilise the growth outlook in the longer term, reducing the likelihood of drastic austerity measures further down the line.

Although the response by market participants to mark down prices might seem logical in light of this, this only further increases the attractiveness of China at the moment, said Cuming.