Cheo: Moved Global Equities To Neutral

The video discusses the current market volatility and the need for portfolio adjustments, emphasizing the importance of staying invested in risk assets despite short-term fluctuations. It explores buffers against geopolitical risks, particularly the Ukraine crisis, highlighting the role of a robust dollar bias and diversified portfolios. The potential for a global financial crisis is assessed, considering the impact of G7 and G20 tensions, commodity prices, and inflation. The discussion also covers the effects of dollar appreciation on Southeast Asia, noting improved economic fundamentals and the role of central banks. Finally, it addresses central banks' strategies in managing liquidity concerns amid volatile financial markets.

What is the current stance on global equities according to the portfolio adjustments discussed?

• Aggressively invested

• Increased investment

• Turned to neutral

• Completely divested

What is considered a key buffer against the economic impacts of the Ukraine situation?

• Reducing all investments

• Investing in European bonds

• A robust dollar bias overlay

• Focusing solely on commodities

What is the role of hedge funds in a diversified portfolio during uncertain times?

• They are not recommended

• They provide uncorrelated returns

• They focus only on equities

• They increase risk

What is the primary concern if geopolitical tensions escalate?

• A decrease in global trade

• A potential global financial crisis

• A reduction in inflation rates

• A rise in technological advancements

How are Southeast Asian economies expected to respond to higher oil prices?

• They will experience a decrease in exports

• They will see a rise in unemployment

• They will benefit from improved terms of trade

• They will face severe economic downturns

What is the current approach of central banks in response to economic data?

• Complete inaction

• A wait and see mode

• Immediate rate cuts

• Immediate rate hikes

What is the expected impact of a stronger dollar on Southeast Asian corporates?

• It will increase strain due to dollar-denominated debt

• It will lead to increased exports

• It will have no impact

• It will ease their financial burdens