Barings's Leung: We've Been Reducing Risk Aggressively

The video discusses the financial markets' response to the war and inflation, highlighting that while the initial shock is priced in, second and third-order effects are still unfolding. Investment strategies are shifting towards risk reduction and cash reserves. China's market is analyzed for its muted inflation and regulatory challenges. The energy sector is considered a viable portfolio diversifier, despite its volatility.

What is the main concern regarding inflation in the context of the war's impact on financial markets?

• Inflation has no impact on financial markets.

• Inflation readings might be hotter than previously seen.

• Inflation is expected to decrease significantly.

• Inflation is expected to stabilize soon.

What strategy is being employed in response to the current market conditions?

• Investing aggressively in all sectors.

• Maintaining a high level of cash.

• Ignoring global market opportunities.

• Increasing risk in balanced portfolios.

What is a significant factor affecting investment in China?

• High inflationary pressures.

• Lack of regulatory issues.

• Absence of market volatility.

• Regulatory gestures and common prosperity.

What is expected from the NPC meeting in terms of economic policy?

• No changes in fiscal policy.

• A reduction in monetary stimulus.

• Increased fiscal stimulus to mitigate external shocks.

• A focus on reducing inflation.

Why are energy stocks considered a good investment despite market volatility?

• They offer good dividends and are trading well.

• They are unaffected by global events.

• They are immune to price fluctuations.

• They always correlate with oil prices.