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00:00[CC may contain inaccuracies] I think that two questions here. One is strategically the longer term, next 12, 18 months with a Fed cut and a soft landing in the US. All of these do point towards a very constructive environment for equities and low risk assets. But as you rightly said, we've been through a very strong rally in multiple assets in 2025. Is there room for a breather or even a consolidation? We did obviously get a very strong correction back in April, but frankly, we've not seen anything like this since then. So I think the question is for investors who still have cash on the sidelines. It may not be the right time to go in at this point. For those investors who do have, you know, a portfolio of stocks and bonds, I would recommend them to revisit the portfolio, whether they achieve some rebalancing after such a strong performance in equities. So, you know, it's never possible to pinpoint exactly when or why a correction would occur. But I would argue at this point, the valuation is pricing in very good economic and corporate performance, which I think is fair for the longer run. But, you know, I think there's still be some potential hiccups on the road in the next few months you mentioned. So you're likely to be in two camps, right, Whether you have dry powder or you're, you know, almost fully invested with the way markets have done, it's hard to imagine. A lot of people have dry powder. So, in other words, for the people, to your point, that are invested in the market, have you said rebalance? What is it in between? How do I reorient my purchase? Well, a couple of ways of doing this. Of course, you know, if you've been recommended allocation of stocks and bonds because stocks have gone up to naturally, your stock allocation would have grown faster than your fixed income portfolio. So again, rebalance back to your recommended allocation. That's the first way. Second ways, there are strategies out there. For example, a ETF with a in better options that actually generates option premium that effectively does is to capture the volatilities, turn that into income. Yeah, I think that would be again a pretty good way to get ready for a potential increase in volatility. If he doesn't, that's okay because it's used to invest in the equity strategy component of that strategy. For bonds right now, I mean, it seems like treasuries have been doing quite well in the face of all these Fed rate cuts, as people are projecting here right now. Should I still look at duration and how should I look at duration? I would prefer I would prefer sort of neutral to short duration still at this point? Absolutely. I think the Fed Cup is very much ongoing. The market's pricing 120 550 between now and the end of next year. So I think more of that reaction will come from the short end. The longer and I think the long term fiscal sustainability potential questions over the independence, all of that to me will still be anchoring the longer enough that yield curve. So the yield curve steepening, the steepening I think still makes a lot of sense, albeit it's a very consensus trade. But I think from that perspective on the Treasury front, that makes sense. The other part obviously is on the higher corporate debt. If we're calling still for soft landing of the US economy, your default rates be manageable. So really just capturing that mid to high single digit when it comes to income, that's that's also pretty good. So for us all fixed income sizable though strategy short to neutral duration on on government bonds and then on how you corporate debt. I think that helps to achieve both capturing the Fed cuts but also the soft landing of the US economy.

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Recommend Investors to Revisit Portfolio Allocations, JPMorgan's Hui Says

Tai Hui of JPMorgan Asset Management says market valuations are pricing in "very good economic and corporate performance, which I think is fair for the longer run but there's still some potential hiccups on the road in the next few months." He speaks on Bloomberg Television. (Source: Bloomberg)

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