What a week we've had. Do you know what a year. What a year. Just how do you stay invested in this market now. Yeah we
continue to stay invested. But we turn to a more selective and more prudent and balanced investment strategy because we keep a
neutral stand on building exposure to risky assets. But we very much focus on that phrase and hedging strategy. Because now we
have the immigration shock from both the US and Europe and we expect Central Bank will turn more aggressive. So we expect
inflation to go up further in the third quarter. So risk. Risk assets on one side. How do you offset it with the stagflation
scenario. Because commodities doesn't seem like that's the traditional hedge fund. No. Currently we are overweight on
commodity thing asset class. So we overweight energy and material stuff. We still believe financial stocks would provide
some hedge to interest rate hike rates and we have an overweight allocation to a hedge fund particularly focusing on multi
strategy and macro hedge fund. And we think commodity laden currency will likely do better in the second half of the year
because I think the market have now pricing significant central bank policy rate hike. Currently we expect another seven to fly
but fat very tight in July followed by two more 50 pay rate hike. And then we expect policy rate in the US to go up to three
point six to 5 percent before we may see a pause in policy tightening in the first quarter of next year. As we expect grow
we'll see more substantial slowdown in the next six months in the US. Well what happens. I mean interest rates going up. A lot
of companies a lot of corporates are really levered up. This would of course expose that. What kind of companies looking for
good credit quality. I'm assuming probably dividend play as well. And on top of that arguably of course good valuation as
well and free cash flows. I mean these are the companies that would perhaps withstand what's happened in our portfolio
strategy very much focus on quality income and for suffocation. And now we are facing significant disruption in a global
economy. So we position in quality company which have the ability to adapt to the disruptive change. Those are company
with have strong balance sheets with resilient cash flow and strong Covid as everybody else wants to go there. Well that's a
deal. Not all companies can fulfill this requirement. So I think for this strong and quality company of which
with powerful adaptability to this macro challenge would actually outperform the market and also grow stronger in a tough
macro environment. The second half are you still thinking it's very much the same or should I expect in terms of the macro
picture. Is inflation going to start to moderate later on this year or do you have to wait for 2023 for that story to play.
Okay. We position for a volatile third quarter because headline inflation in the developed economy particularly in the US and
the euro. So we'll continue to suit up. So this will bring what ability to the equity market. But in the bond market with things
bond yields have largely reflect the Fed policy tightening pace and the front loading of Fed rate hike have already push up on
extended through an attractive level. So we actually see value in the short to medium duration. In terms of the yield curve
everything investment grade bonds in the feed to five years duration settlement actually look quite attractive. How does the
dollar essentially play into all this and where do you think the dollar goes next is gonna be key isn't it. Yeah I think after
the sharp appreciation of the dollar many investor with Delta with the dollar strength can hole in the second half of the
year. But when you look at the central bank policy tightening trajectory the Fed is expected to lead in this round of policy
tightening. So the ECB the Bank of England they will continue to lag behind the Fed in terms of the pace of rate hike. So we
still position for a strong U.S. dollar. And as you can see from Asian Central Bank actions I think the central bank's outside
the US continue to remain quite cautious about the impact of policy tightening on growth outlook particularly in Hong Kong
and Aussie on the equity markets. Also Australia Y and Japan. Yeah I think the the priority. Asian central banks do very much
on growth stabilization. So I think I will follow. Yeah they would rather stay on the prudent stand in order to defend the
growth of.