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00:00WHAT STRATEGY ARE YOU LOOKING AT THAT YOU WOULD GET THE EXPOSURE AND PROTECTION YOU WANT, AND HOW MUCH OF THOSE -- OF THIS STRATEGY WOULD INVOLVE CASH? > > FROM AN ASSET ALLOCATION PERSPECTIVE, DEFINITELY CASH INCREASE IN THE LAST WEEK, SINCE THE BEGINNING OF THE YEAR BUT DEPENDING ON RISK WE COULD BE SITTING ON UP TO 50%. BUT VOLATILITY AT THESE LEVELS NEEDS TO BE TRADED. [INDISCERNIBLE] AT A CERTAIN POINT YOU WANT TO START GETTING EXPOSURE TO THE MARKET AND YOU CAN TRADE THAT VOLATILITY BY FINANCING WITH [INDISCERNIBLE] LOWER AND THAT IS SOMETHING WE HAVE BEEN DOING. IT POTENTIALLY GIVES YOU OPPORTUNITIES TO ENTER AT A BETTER SPOT. CURRENTLY WE HAVE A MORE DEFENSIVE STANCE. FROM A GEOGRAPHICAL POINT OF VIEW WE LIKE SWITZERLAND, SINGAPORE. IN TERMS OF INDUSTRY, NASDAQ IS MORE ON THE TECHNICAL SIDE. GROWTH WILL REMAIN UNDER PRESSURE. WE LOOK AT MORE STABLE COMPANIES. UTILITIES, DIVIDENDS. KNOWING THAT IF THE MARKET CORRECTS, EVERYTHING WILL. THIS IS ABOUT SENTIMENT AND FLOW RATHER THAN VALUATION. HAIDI: HOW FULLY INVESTED DO YOU STAY IN THIS ENVIRONMENT? > > LIQUIDITY DEPENDS ON YOUR RISK SHOULD BE 20% TO 50% AND YOU WILL PROBABLY GET OPPORTUNITIES TO USE OF A BETTER LEVEL SO YOU WILL SEE POTENTIALLY BETTER ENTRY LEVEL BUT LIQUIDITY ALLOWS YOU TO BE MORE AGGRESSIVE IN TERMS OF OPTIONALITY STRATEGIES. IF YOU ARE LIGHTER, YOU CAN TAKE ADVANTAGE OF VOLATILITY WITH A LIGHTER MIND. HAIDI: IF YOU WANT TO TRADE THE VOLATILITY, THERE ARE MANY OPPORTUNITIES AVAILABLE WHEN IT COMES TO CHINESE STOCKS AT THE MOMENT. HIS IT IS -- IS THIS STILL A FALLING KNIFE SITUATION WITH COVID SITUATION AND REGULATORY AND STRUCTURAL ADJUSTMENTS ON CRACKDOWNS? > > VALUATIONS OF CHINESE ASSETS ARE EXTREMELY CHEAP BUT SHORT-TERM THEY COULD GET CHEAPER. SO THERE IS LITTLE VISIBILITY. SO CHINA REMAINS AN ATTRACTIVE MARKET. SOME OF THE CHINESE COMPANIES TRADE WITH THE GOOD MARGIN AND HAVE GOOD GROWTH AND HAVE SHOWED CONSISTENCY. BUT IN THE SHORT-TERM THEY COULD FALL MORE. WHEN YOU TALK ABOUT CHINA YOU HAVE TO LOOK AT THE LONG-TERM STRATEGY AND THINK OF IT THAT WAY. YOU CAN TRADE OUTRIGHT OR SELL OPTIONS OR EQUIVALENT OF THAT ON SOME NAMES THAT HAVE HIGH VILLA UTILITY -- THAT HAVE HIGH VOLATILITY. HAIDI: THE LAST TIME WE SPOKE TO YOU, ONE OF THE MAJOR THINGS WAS SEMI CONDUCTORS. WITH THE NUMBERS WE HAVE SEEN ON THE EARNINGS SEASON, HAS THAT CHANGED? > > NOT AT ALL. IN TERMS OF STRUCTURAL GROWTH IN INDUSTRY, SEMI CONDUCTORS CONTINUE TO BE ONE WE REALLY LIKE AGAINST CYBER SECURITY IN THE FUTURE OF PHARMA. SEMI CONDUCTORS, SOME OF THE NUMBERS HAVE BEEN QUITE GOOD. YOU WILL GET CYCLICALITY. SEMI CONDUCTORS WILL BE IMPACTED , THEY ARE NOT ISOLATED. BUT THEY WILL BE CRITICAL FOR THE GROWING DEMAND AND MARKET GOING FORWARD.

SGMC's Bondurri: Trade Volatility At These Levels

SGMC Capital CEO and Founder Massimiliano Bondurri discusses global and Asian markets at the start of the trading week. He speaks with Shery Ahn and Haidi Stroud-Watts on "Bloomberg Daybreak: Asia". (Source: Bloomberg)

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