Live on Bloomberg TV

00:00TODAY WAS ALMOST WHAT YOU MIGHT EXPECT FOR 2020 TWO. A MICROCOSM. INVESTORS FINALLY DECIDING THE LAST HOUR OR SO IN THE U.S. THAT STOCKS WERE WORTH MORE TODAY THAN THEY WERE YESTERDAY. WHAT ACTUALLY CHANGED? WAS THIS DIP BUYING OR SOMETHING ELSE? > > IT IS ABSOLUTELY DEFYING. I THINK MOST OF THE INVESTORS STARTED 2022 KNOWING WE HAD A COUPLE GOOD YEARS. THERE IS A LOT ON THEIR MIND. TAKING SOME OFF THE TABLE HEADING INTO A U.S. REPORTING SEASON. PERHAPS A LITTLE BIT TOUGHER GIVEN THE SUPPLY CHAIN AND SOME OF THE SHORT-TERM PRESSURE. THAT IS WHAT WE SAW IN THE FIRST FEW WEEKS OF JANUARY. THERE HAVE BEEN A LOT OF INVESTORS SITTING ON THE SIDELINE WAITING FOR OPPORTUNITIE TO GET IN AND FIND OUTS FROM GREAT COMPANIES TO BUY. THAT IS WHAT WE SAW LAST NIGHT TO WEDNESDAY NIGHT, WEDNESDAY IS INCREDIBLY IMPORTANT BECAUSE OF THE FED SHOULD WE DO EXPECT THEM TO REAFFIRM NORMALIZATION IN TERMS OF POLICY. I DON ' T EXPECT THEM TO BE MORE HAWKISH THAN WHAT THEY HAVE BEEN. INVESTORS NEED TO BE MINDFUL THAT THIS IS A YEAR WHERE WE WILL HAVE THE LIFT OFF OF THE NORMALIZATION OF THE POLICY. VERY LOOSE POLICY THAT HAD BEEN TAKING PLACE AROUND THE TIME WHEN THE PANDEMIC WAS HIT. AT THE ECONOMIC ACTIVITY HAD PICKED UP SIGNIFICANTLY AROUND THE WORLD. IT BODES WELL FOR A POSITIVE FEW WEEKS . PAUL: MARKETS DO SEEM TO BE GETTING THEIR HEADS AROUND THE FED TIGHTENING NARRATIVE. WE HAVE ONGOING SUPPLY CHAIN PRESSURES. NEW VARIANTS OF THE CORONAVIRUS. INFLATION CONTINUING TO RISE. WHAT IS YOUR OUTLOOK FOR EARNINGS IN THAT ENVIRONMENT? > > YOU JUST HIGHLIGHTED ALL THE RISKS AND WORRIES THAT INVESTORS DO FACE AT THIS POINT. THERE IS A LOT OF RISK. I THINK WE WILL HAVE READY GOOD DEMAND ENVIRONMENT. THE REVENUE FRONT, WE WILL SEE PRETTY GOOD GROWTH. THERE WILL BE A LITTLE BIT OF MARGIN PRESSURE ESPECIALLY WITH THIS UPCOMING REPORTING SEASON GIVEN THE IMPACT FROM THE OMICRON DISRUPTION. WE SHOULD SEE THAT EASING OVER THE NEXT SIX MONTHS SO WILL BE SOME OF THE TEMPORARY INFLATIONARY PRESSURE AS WELL SHOULD EASE AND AT THE NEXT SIX MONTHS. WE SHOULD THINK HOROWITZ WILL STILL GROW. -- THINK CORPORATE WILL STILL GROW. WE SHOULD SEE CAPITAL RETURN COME THROUGH FOR THE REST OF THE YEAR AS WELL. SHERY: IS THAT BOTH FOR DEVELOPED AND DEVELOPING ECONOMIES, THAT SORT OF EARNING SUPPORT YOU ARE EXPECTING TO SEE? > > YES, SO WE SHOULD SEE STRONG EARNINGS SUPPORT COMING THROUGH FOR ALL THE ECONOMIES. HOWEVER, IF YOU LOOK AT EARNINGS GROWTH AND CORPORATE EARNINGS GROWTH AS WELL AS EQUITY, EMERGING MARKETS HAVE LAGGED SAVE YOU ONLY COMPARED TO THE LIKES OF THE U.S. ECONOMIC ACTIVITY IS RUNNING PRETTY HOT AT THE MOMENT SHOULD THAT IS WHY THE NORMALIZATION OF POLICY. WE THINK THE E.M. MARKET LOOKS PRETTY GOOD GIVEN HOW FAR THEY HAVE LAGGED. WE ARE ALSO POSITIVE ON THIS TRILLION MARKET OR WE HAVE LAGGED AS WELL BECAUSE OF THE LOCKDOWN. ECONOMIC GROWTH WILL BE STRONGER ACROSS E.M. AUSTRALIA RELATIVE TO OTHERS. THE POLICY STATS WILL BE QUITE LOOSE.

No schedule data available.

Tribeca Investment Partners' Liu on Market Strategies

Jun Bei Liu, Portfolio Manager at Tribeca Investment Partners, discusses her investment strategies. She speaks with Shery Ahn and Paul Allen on "Bloomberg Daybreak: Asia". (Source: Bloomberg)

More From Daybreak Asia
All episodes and clips