it seems that you know the big voices the big players are signaling yes go ahead we obviously got the president weve got mcconnell weve got mccarthy of course and others are you more optimistic like it seems they are in washington that this is a deal thats going to get through more work to do but the first vote perhaps by wednesday in the house yes i am and i never thought it wouldnt go through there are these people like bob gates and green and go sir and nobody is saying that default is better than doing a deal with biden maybe donald trumps going to have to make a phone call to those people but if he does then i think even they will agree so i never thought it wasnt going to go through ok so lets put that behind us lets lets say youre right others are right and its done what is the focus for markets now especially in asia is it still a lot the federal reserve and what happens to bond yields that they do or dont go ahead with a rate hike in june asia is a very bifurcated market youve had basically japan and then everybody else so japan is our version of ai its the klondike up there right now and ive got to admit the story makes sense theres about five different parts to it that are just very compelling terms of you know everything from warren buffett to cheap prices to corporate reform to cheap currency and anti china play so i mean japan has momentum i think its gone up a bit too much but i also think its going to keep going up and then the rest of asia is just sort of being left in the dust and i just dont think it has the kind of stories that are in play right now and when i see the kind of stories that are in play of course im talking about ai so if you take away china which most people arent investing there then where is the ai in china asari in asia outside of japan is not a whole lot of it just to your point on i and i raised this question with an earlier guest as well yeah an exciting technology yes many applications but at the same time do you see that it might have shades of a dot com bubble about it i do but you know i was just reflecting that the amazing thing is that we already had a sort of dot com bubble didnt we over the last couple of years with the meme stocks and a stay at home stocks and all that stuff and then they collapsed and what has been really amazing to me is that you usually dont see a v shaped recovery in something when it crashes so those tech stocks that all crashed so hard last year and now you know theyre racing back up and i dont think ive seen anything like that so its really quite amazing being powered by as you rightly point out i think a story which is a good one but were getting ahead of ourselves and you know and in videos trading at 50 times price to sales for example you can look back in history and stocks dont really trade at 50 times price sells for very long well you can also say thats because theyve got order book which is limitless everybodys going to want to buy these chips but i still feel that these things have run up too fast actually and dotcom bubble perhaps its premature to say in march or 2000 but weve seen this kind of thing time and time before the other analogy i like to use is the biotech bubble in the 90s 1990 1991 in the united states and that was a real story we were starting to use make drugs out of molecules taken from the body instead of drugs made from plants this is a very very big story but the stocks got priced way too high just circling back to japan as well weve got the nikkei now up better than 2 percent cent just the first eight minutes or so of trade is up better than 18 percent so far this year and you did say a moment ago that you felt its looking a little bit overvalued if there is to be a pullback where do you see that coming how enduring do you think it would be and would you treat that as a buying opportunity the only part of the question i can answer is the last one i would treat it as a buying opportunity but whats going to make it go down i cant say the technicals are looking very strong for the japanese market we actually find from a technical analysis point of view its the strongest market in a in asia so i i think it should come down about well no you just said its up 2 percent so i was gonna say its about 5 percent now i have to say should come down about 7 but i have a feeling that it will continue to grind higher between now and the end of the year i have to ask because theres a story we just ran in the last couple of days that both goldman and nomura do see further to go and in fact i believe that jp morgan is saying that therell be more inflows there havent been that many yet i want to bring this all to the bank of japan is there any way in which this rally not the nearterm but maybe a longer term rally based on all the things you said could be up ended if the bank of japan does decide that inflation is strong enough to go ahead and even start to tweak yield curve control really great question and i i first of all i think they picked the most dovish person they could find mr wade so i dont dont expect anything any huge pivot from him but if it happened yeah theoretically that could upset this rtx applecart a little bit on the other hand as a foreign investor youd be getting some very big currency gains so i dont know i think that its the bank of japan has the potential to disrupt this rally but i also really doubt theyre going to do anything like a 180 degree change all right how about china we know that the peoples bank of china is expected by some to do a triple our cut reserve requirement ratio they havent stepped up with a specific government move yet we know the reopening isnt as strong as people thought it would be in terms of investment opportunities what do you see there well the one that seems to be most popular is buying state owned enterprises because the government wants their share prices to go up actually its working the share prices of the state owned enterprises are going up but it doesnt seem like a very sound reason to own them to me in china i mean i have to say these big tech stocks and you know the names 10 cents and jd and companies like that they are very very inexpensive and theyre not going to grow at 20 to 25 percent per year anymore but they they still have a lot of good business to do in china and i think in other parts of the world as well they they and they have lots of cash to deploy so rather than chase studied the state owned enterprises if i was going to own china i think i just owned those quality big internet platforms in china and id just kind of put them away i call it a refrigerator trade because if youre getting this rerating and technology globally i think you know eventually the chinese ones have to participate in that and you come away come back in a year and open the fridge hopefully theyll theyll theyll have turned out in nice investments