a lot to watch out for what will dictate the most what happens in the market the next few weeks well i think clearly will be the inflation trend whether you do get a peaking or not and of course a lot of all these economic data associated with us labor market i think those will be key to see whether well we get a pause or a sort of a pivot in terms of the rate increase adding those are very key things when you take a look at market movements of expectations and inflation possibly has peaked might there be disappointment well i think its due to early this of course you have to see that vision outlook in the data its two extremely volatile and sticky clearly goods inflation shows signs of improvement but of course when you look at service inflation rands wages are still quite high in that sense but of course midtown is also front and center how do you see that shaping investor sentiment what are you personally expecting him some say perhaps a gridlock can be can be anticipated well i think if you look at the polls its do a lot of uncertainty of course if you do get a base on a gridlocked historical experience to show a positive boost to markets but its very hard to calibrate investment strategy based on historical results and historical evidence but i think whats clear is that we want to be a bit cautious going to be in terms of us equities we have reduced our overweight position there but global in terms of global equities were going to be a bit cautious going into the next few weeks james is it case that a return to 60 40 but in this case it says 60 is representing the bond rating yeah i think this time really its a time in which we prefer a global investment grade bonds over equities because really go by investment grade in terms of the u its much more attractive when you look when you compare that with earnings you from the equity side so we think what risk we want at least for the short term does favor global investment grade especially the lower duration once and youre also looking at alternatives arent you here is what i mean i am talking about the likes of hedge funds youve been looking at these closely as well what have you been seeing particularly what you look for when you do put money in the at this stage we want to help investors get diversification through not just global investment grade bonds but also true alternatives such as hedge funds that could exploit the current macro situation so youre one whether its market neutral strategy macro a long shot i think those are where we think can actually capitalize on the current uncertain macro environment so i mean you look at the dollar and where it is coming has that been affecting the way youve been making decisions and of course with that background of a strong dollar just anticipated to carry on and has it been good for you to actually be getting into that see emerging market local currencies rather than the greenback looking forward well at this stage we think that the dollar bill can actually do continue on albeit that increase might not be as large as what we have seen over the last two months so generally we still think the dollar can actually trend higher but maybe the pace of increase might not be as large but of course clearly theres a lot of uncertainty associated with that clearly whats going to happen with policy uncertainty from the macro front and i think all those actually bought well for the dollar if the dollar has peaked then the yuan has bottomed its still too early to say whether the dollars peaked but i think the dollar strength should still continue on we still think that the yuan can actually still be fairly stable but clearly theres lots of policy uncertainty and i think the trajectory of the yen and also the dollar depends on where the policy will be but it does seem like if you take a look at the fixing of recent days that a ppo seems pretty much comfortable and where the yuan is right now is that a fair assessment well at this stage it really depends on first that the economic data clearly this uncertainty the slowing momentum when you look at the pmi its largely housing market related and i think clearly some currency help particularly if you do get a little bit of a weakness from that could actually help the economy as a whole but i think by and large its really the heavy lifting will be largely in the monetary policy side but also i think fiscal policy so those other indicators or even the policy signals that we will watch in the months ahead and of course into 2023 whats clear when it comes to chinese stocks in particular were seeing some buy in the last four days is this the right time to be picking against tech stocks in a way you alibaba as you may want to take a longer term perspective three to five years is a lot of upside for these companies well we are neutral fall for chinese stocks as of now really because that is its hard to predict where the policy will be but of course if you extend your horizon whether its 3 5 years well that are very interesting values that are emerging especially high quality companies that could benefit such as well i think you want to look at sectors that could benefit from chinas policy rebalancing whether its true the green economy or even through technological innovation and upgrade so i think thats where you to look for opportunities james tell me about sovereign and sovereign debt and particularly the treasury market the worlds biggest and how its being skewed by whats going on with quantitative tightening and have you seen a draw down in the amount of liquidity because its not just because of that because of market structural reasons as well well there are market structure reasons i think we are in the midst of a period of kutty but clearly i think whats determining is of course inflation expectations and also what the fed will do in terms of the data right wise its going to very much depend on that and whether we will get a pending pivot of sorts that amount of rate increase or and of course a subsequent pass rate cut i think that whole sequence would likely play out throughout 2023 and 2024 so of course it really depends on how the economic data will behave in the weeks and months ahead how is your portfolio looking like james for a very long time we have far trade is keeping perhaps 20 percent in cash is that still the case given our risk appetite is somewhat returning well i think we are overweight bonds especially investment grade bonds versus equities much cac holding well i think how we look at it will be largely true actually a in global bonds a turd in goback with these entertaining alternatives that includes where those alternatives commodities some cash positions but thats where we think opportunities will be