00:00So we're seeing tensions in the Middle East once again flare up again.
00:04I mean, you're seeing stocks continue to ride on AI, earnings and the like,
00:08but when you talk about bonds, you're starting to see that melt up in yields once again.
00:11Oil continues to remain elevated.
00:13How do you actually look at multi-assets now, and what's the strategy moving forward?
00:18Yeah, there's a ton of drivers in markets.
00:20I suppose what we've got to try to do is focus on what the cyclical impacts are
00:23and what the structural impacts are from what's going on at the moment.
00:26The cyclical impacts are inevitably high oil prices,
00:29energy-linked plays should do well.
00:32Those that are dependent on energy as inputs will struggle.
00:35And then there's also the activity implications because it's a supply shock.
00:38It's not just a price shock.
00:40So in that sense, which economies, which regions around the world
00:42are more sensitive to that supply shock?
00:44And that's why we're bifurcating with a preference more towards the US
00:48over places like Europe.
00:49And then within the equity market construct,
00:52we like those structural plays like tech and AI,
00:54which still seem to have good tailwinds,
00:56and the energy-related plays as well.
01:00How much do these recent headlines,
01:04recent I mean the last three weeks in the war,
01:06affect your investment decisions?
01:08I just wonder how much they still feature in just your thinking at this point.
01:13That's a great question.
01:14One of the things that we're grappling with at the moment is
01:16we can form a thesis on how the macro will unfold
01:19and build a narrative around that.
01:21But you're ultimately getting rewarded or punished by price action.
01:24And so we try to stay as closely focused on what the market's actually doing
01:28rather than what people are saying in and around now.
01:31Now, that being said, though,
01:32we have been in an environment where sentiment and flows are driven markets.
01:36Every once in a while, fundamentals and macro do reassert themselves.
01:39And the longer this conflict goes on,
01:41then we will have to start to reassess the weight that we place on the different pillars,
01:45sentiment flow, fundamental macro.
01:47Thank you, Fred.
01:47Thank you, Fred.
01:47Thank you, Fred.
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