With rising yields we've also seen the pressure on Asian equities where are you finding some comfort.
Yeah I know it's difficult to find comfort. I mean we've had two forces of
gravity work Malaysian equities to raising interest rates that you were mentioning earlier on of course a lock downs and a
weaker growth in China as well. But with regards to to to get a Fed rate decision that comes through in the
inflation numbers if you look at the sector performance throughout this year in Asia the key driver really has been
interest rates. The relative sector performs. I mean certain sectors really sensitive to interest rate movements. They've
underperformed the ones that are not so sensitive to interest rate movements. They've outperformed. So it's it's it's really
important. And I suspect that somewhere throughout this year we're going to get to a situation whereby inflation ism is
speaking and that yeah that will will rule that the relative sector performance is going to change. So throughout this year
probably the most important move that's Asian equity investors have to make is to think about duration to think about
how to position yourself if inflation is going to peak and if bond yields are going to peak as well when that's going to
happen. Well we'll have to see. I don't know. What is your best case scenario though at this point. How high
are we talking about yields going Treasury yields and how much pressure are we talking about for Asian equities.
Well I think inflation and yields have gone up a little bit higher than what we initially anticipated. So I'll be very eager
to see actually not only the talk that comes out of the Fed's overnight but also what the inflation print is going to be this
month in particular the month on month inflation and or a year or a year it will be high. But do we see continued momentum
coming through. I would say that the beginning of the year. So I'm really
talking about before the whole situation in the Ukraine started to develop we saw that probably by about now inflation numbers
will peak. But of course we've had these sorts of geopolitical issues and increases in energy prices. We've got to see what the
impact is of that. So it might take a little bit longer. We'll have to see those lately from mount from month to month. But we
have to also be careful not to get caught out by being in those sectors that allow us to be well positioned for rate
increases and higher inflation. If that doesn't take place we might see quite a rapid shift in sector performance across Asia.
So we got to keep a very close eye on this. When you take a look at the structural shifts taking place
across Asia which are the sectors and types of companies that could benefit from that transformation
I think there's actually quite a lot of interesting stories coming through in in Asia. Now if you look at the economic side
it obviously doesn't look really good. We have the lockdown. So you guys were just talking about this and it's not spreading
right into way into Beijing. That is not good. Supply chains are being choked up. So that's not good. We see economies cutting
down forecasts and this is just for this year. We also have to think about what the medium term outlook is in particularly in
China when it comes to growth. They want to move towards a new growth model. They've done in itself controlled all sorts of
risks as as well. So that that is a challenge to say the least. But if you look at it from equity markets bottom up because
stock markets are just not economies. If you look at it from a bottom up and you see what happens in all sorts of sectors we
see consolidation taking place. We see premium ization consumers willing to buy higher priced products. So there's quite a few
companies. Chinese beer and liquor companies Indonesian herbal companies shipping books shipping airliners into all kinds of
industry dynamics are taking place that are actually quite favorable for the companies that are listed. So I think you have
to really dig a little bit deeper into marketing and find out find the stores are actually quite a few of the.