GAMA Asset Mgmt's de Mello on Markets and Strategies

The video discusses the impact of US inflation and Fed rate hikes on global markets, particularly Asia. It highlights the potential for higher terminal rates and the implications for risk assets. The speaker expresses cautious optimism about Asia's growth prospects, especially with China's reflation. Investment strategies are suggested, focusing on Asia and selective tech stocks. The video also covers treasury yields, recession risks, and inflation hedging strategies, emphasizing commodities as a potential hedge.

What is the market's current expectation regarding the terminal rate in this cycle?

• It will remain the same as before.

• It will be higher than previously thought.

• It will decrease gradually.

• It will be lower than previously thought.

What is the expected impact of the Omicron variant subsiding on Asia's growth?

• It will have no impact.

• It will slow down growth.

• It will accelerate growth.

• It will cause a recession.

Why are Asian risk assets considered attractive on a relative basis?

• They are cheap and recovering from the pandemic.

• They are less affected by global inflation.

• They are more expensive than other regions.

• They have high interest rates.

How should tech stocks be approached in a rising rate environment?

• Invest in tech regardless of profitability.

• Focus on profitable tech with strong earnings.

• Focus on non-profitable tech.

• Avoid all tech stocks.

What is the expected range for 10-year Treasury yields?

• 4.0% to 4.25%

• 3.0% to 3.25%

• 2.25% to 2.50%

• 1.5% to 1.75%

Does a flattening yield curve automatically indicate a recession?

• It indicates economic growth.

• It may increase recession risks but is not automatic.

• No, it never indicates a recession.

• Yes, it always indicates a recession.

What is one of the suggested hedges against inflation?

• Cryptocurrencies

• Real estate

• Commodities

• Bonds