Lombard Odier Reducing Our Risk Asset Allocation: CIO

The video discusses global economic challenges, including the war in Ukraine, inflation, and China's COVID-19 policy. It highlights the impact of these factors on risk assets and currency markets, particularly the strength of the US dollar and its effect on emerging markets. The speaker advises caution in Asian investments, favoring US stocks and commodities as a hedge against inflation. The Philippines' economic outlook is also examined, noting potential fiscal changes and their impact on the peso.

What strategy has been used to protect client portfolios from downside risks?

• Reducing bond holdings

• Investing in emerging markets

• Put spread strategies

• Increasing equity exposure

What is the main concern regarding the economic situation in China?

• Trade surplus

• Zero COVID policy affecting growth

• High inflation rates

• Rising interest rates

How has the strength of the US dollar affected emerging markets?

• Decreased yield spread with US dollar

• Strengthened emerging market currencies

• Improved trade balance

• Increased attractiveness of emerging currencies

What is the current stance on investing in Chinese equities?

• Avoid completely

• Neutral

• Underweight

• Overweight

Why are commodities considered a good hedge against inflation?

• They are linked to inflation

• They provide diversification

• They are not affected by market fluctuations

• They have stable prices

What is the expected impact of the new government in the Philippines on fiscal spending?

• Stability in fiscal policies

• Increase in fiscal spending

• Reduction in current account deficit

• Decrease in infrastructure investment

What has been the recent trend of the Philippine peso?

• Appreciating due to trade surplus

• Hitting a three-year low

• Strengthening against the US dollar

• Remaining stable