WEBVTT - 5 things you need to know about Esports | EP 9 0:00:05.700 --> 0:00:09.390 Hello and welcome. Esports or competitive video gaming is on 0:00:09.390 --> 0:00:12.240 track to be a billion dollar industry. It is also 0:00:12.240 --> 0:00:16.110 a sector that presents plenty of investment opportunities for corporate 0:00:16.110 --> 0:00:19.349 and retail investors. I have chubby germ seeing from the 0:00:19.350 --> 0:00:22.259 money my team, Etzioni and I'll be looking at the 0:00:22.260 --> 0:00:24.480 five things you need to know about investing in East. 0:00:24.480 --> 0:00:27.870 But joining me now is Larkin White, co-founder of tournament 0:00:27.870 --> 0:00:33.420 organizer E-sports Players. Oh yes, Powell and Kelvin Wong, market 0:00:33.420 --> 0:00:37.409 analyst at CMC Markets. Welcome to the show. Hi. Good 0:00:37.409 --> 0:00:41.159 to be here. Hi, everyone. E-sports has huge potential, especially 0:00:41.159 --> 0:00:44.760 in Asia. The region generated nearly half of all global 0:00:44.760 --> 0:00:48.959 esports revenue in 2019 at about half a billion dollars 0:00:49.440 --> 0:00:53.610 in the Asian region. Some market watchers are forecasting double 0:00:53.610 --> 0:00:56.880 digit revenue growth this year. Kelvin, could you talk us 0:00:56.880 --> 0:00:58.950 through some of the factors driving growth? 0:00:59.100 --> 0:01:00.750 Well, actually, there are a couple of factors. 0:01:00.780 --> 0:01:03.630 Number one is let me talk about the acceptance of 0:01:03.660 --> 0:01:05.429 e-sports as a professional 0:01:05.430 --> 0:01:08.309 sports e-sports in a couple of years, with about 10 0:01:08.310 --> 0:01:10.470 to 20 years, it's been around. It's only that recently. 0:01:10.470 --> 0:01:12.930 In the last five years, we began started recognized as 0:01:12.930 --> 0:01:13.740 a professional 0:01:13.740 --> 0:01:17.100 sporting legal team as being competitive 0:01:17.130 --> 0:01:20.070 sports as recognised by the Asian Games, as well as 0:01:20.069 --> 0:01:23.820 the Southeast Asian Games and the next particular. Although EA 0:01:23.840 --> 0:01:26.069 Sports got a goal pass, will be the Olympic Games. 0:01:26.340 --> 0:01:26.910 It's a big 0:01:26.910 --> 0:01:30.180 labour of feature at the fringe spots upcycled in mobile 0:01:30.330 --> 0:01:33.240 competition. These sports and due to 0:01:33.240 --> 0:01:36.750 the external environment, we're actually being reinforced by the 0:01:36.750 --> 0:01:38.130 pandemic. Most of 0:01:38.130 --> 0:01:39.720 us are being locked out of the kind 0:01:39.720 --> 0:01:41.250 of caveman situation 0:01:41.459 --> 0:01:44.100 where people got nothing else better to do, start a 0:01:44.200 --> 0:01:45.000 being and grow 0:01:45.200 --> 0:01:46.380 and start to find out more about 0:01:46.560 --> 0:01:48.810 how it was. This is possible. These are the two 0:01:48.810 --> 0:01:50.220 actually main factors as a 0:01:50.220 --> 0:01:50.700 rethink 0:01:50.760 --> 0:01:52.230 the growth of e-sports in 0:01:52.230 --> 0:01:53.160 the last one or two 0:01:53.160 --> 0:01:55.230 years, as well as the coming years ahead. 0:01:55.540 --> 0:01:56.130 I agree. 0:01:56.160 --> 0:01:59.910 For myself, it's also the consumer behaviour factor that is 0:01:59.910 --> 0:02:03.110 driving e-sports. The global pandemic lockdowns 0:02:03.180 --> 0:02:08.730 UK should actually accelerate that. The consumer behaviour, things that 0:02:08.730 --> 0:02:10.470 consumers are now very 0:02:10.470 --> 0:02:10.990 engrossed, 0:02:10.990 --> 0:02:15.149 fees, very lofty online. I estimated this digital 0:02:15.150 --> 0:02:18.450 behaviour that has been accelerated a good five to seven 0:02:18.450 --> 0:02:19.890 years because of that 0:02:19.889 --> 0:02:23.160 pandemic situation. So there are more people who are 0:02:23.160 --> 0:02:24.750 playing games as a form of 0:02:24.750 --> 0:02:25.380 entertainment. 0:02:25.530 --> 0:02:27.510 But aside from that, the lockdown 0:02:27.510 --> 0:02:29.100 situation, I think many people 0:02:29.100 --> 0:02:31.590 are also engaging in games to 0:02:31.590 --> 0:02:36.210 socially interact online with their friends and family that used 0:02:36.210 --> 0:02:37.870 to interact online. 0:02:37.889 --> 0:02:40.109 It's also driving e-sports. 0:02:40.410 --> 0:02:44.250 You can play games frequently with your friends, but after 0:02:44.250 --> 0:02:45.510 a while, you may look at 0:02:45.510 --> 0:02:47.490 how to compete on a friendly 0:02:47.490 --> 0:02:49.350 basis, on a competitive 0:02:49.350 --> 0:02:50.370 manner, within the 0:02:50.370 --> 0:02:53.580 community, against your friends. And I think all those are 0:02:53.580 --> 0:02:55.020 driving esports. 0:02:55.500 --> 0:03:00.000 Acceleration in consumer digital behaviour has also attracted the attention 0:03:00.000 --> 0:03:03.480 of corporates to e-sports, and now we're also seeing non-endemic 0:03:03.480 --> 0:03:06.290 brand pump cash into esports. Why is that? 0:03:06.630 --> 0:03:08.310 We are in a day and age 0:03:08.310 --> 0:03:08.730 where 0:03:08.730 --> 0:03:14.310 consumers want to interact with brands that understand their lifestyle, 0:03:14.460 --> 0:03:17.560 so it's no longer adequate just to pace 0:03:17.580 --> 0:03:19.200 a logo on ATS. 0:03:19.290 --> 0:03:23.160 Whether it's digital or physical, brands understand that they want 0:03:23.160 --> 0:03:27.300 to be involved in activities that consumers like. They want 0:03:27.300 --> 0:03:27.780 to be 0:03:27.780 --> 0:03:29.549 part of that digital lifestyle. 0:03:29.850 --> 0:03:33.130 So hence you see what is endemic and non-endemic brands. 0:03:33.150 --> 0:03:33.780 They really 0:03:33.780 --> 0:03:37.860 tried to understand the lifestyle, the digital lifestyle consumers and 0:03:37.860 --> 0:03:39.630 gaming is a very, very big 0:03:39.630 --> 0:03:40.830 component in that 0:03:40.830 --> 0:03:41.820 digital lifestyle. 0:03:41.970 --> 0:03:44.310 On top of this, we will have a significant 0:03:44.340 --> 0:03:46.170 government push as well towards 0:03:46.170 --> 0:03:47.550 e-sports because if you look 0:03:47.550 --> 0:03:50.160 at the situation right now, the growth of esports in 0:03:50.160 --> 0:03:52.680 the next couple of years, the people come in our region, 0:03:52.680 --> 0:03:55.460 especially the Asian region. We, I believe, close to, I think, 0:03:55.470 --> 0:03:56.040 50 percent. 0:03:56.040 --> 0:03:57.810 The growth will be sort of seen a reason. 0:03:57.810 --> 0:03:58.530 Yet, especially 0:03:58.530 --> 0:04:00.570 in China just right now, obviously, 0:04:00.610 --> 0:04:03.230 it depends how you look at things. The number two, well, 0:04:03.250 --> 0:04:06.540 largest economy. Some of us may debate about that, but 0:04:06.540 --> 0:04:08.610 nevertheless you start to see a big push for Beijing, 0:04:08.850 --> 0:04:10.170 especially annual 0:04:10.170 --> 0:04:12.000 League of Legends, which is one of the 0:04:12.000 --> 0:04:13.320 premier competitive 0:04:13.350 --> 0:04:16.919 e-sports competitions around the world to be hosting in the 0:04:16.920 --> 0:04:19.950 next two consecutive years in China. And there's lots of 0:04:19.950 --> 0:04:24.270 incentive or subsidy scheme to for into hosting of this event. 0:04:24.570 --> 0:04:25.890 So if this can be 0:04:26.100 --> 0:04:26.520 pretty much 0:04:26.520 --> 0:04:30.089 successful, we may start to see several Asian 0:04:30.089 --> 0:04:30.960 countries in 0:04:30.960 --> 0:04:32.250 Singapore to start 0:04:32.310 --> 0:04:35.400 taking a look at this e-sports as another driver of 0:04:35.400 --> 0:04:36.180 economic growth. 0:04:36.630 --> 0:04:38.880 If you look at how e-sports has grown in Asia, 0:04:38.880 --> 0:04:41.850 the region now has the largest audience of aespa players 0:04:41.850 --> 0:04:44.400 and fans in the world, with half a billion esports 0:04:44.400 --> 0:04:48.299 fans and almost 600 million e-sports gamers keen. Why would 0:04:48.300 --> 0:04:50.909 such a huge audience pool? How can you possibly be? 0:04:51.839 --> 0:04:54.000 You can see as the sector 0:04:54.000 --> 0:04:55.200 matures, the 0:04:55.380 --> 0:04:59.610 revenue and business model are starting to diversify, and you 0:04:59.610 --> 0:05:02.400 are seeing very interesting business models that are coming up. 0:05:02.820 --> 0:05:05.460 We also have some. What conventional revenue 0:05:05.460 --> 0:05:06.900 model like sponsorship 0:05:06.900 --> 0:05:10.260 and advertisement, that's definitely a mainstay in the 0:05:10.270 --> 0:05:11.820 e-sports industry, 0:05:12.360 --> 0:05:13.320 you have now 0:05:13.320 --> 0:05:14.730 also content 0:05:14.760 --> 0:05:15.210 premium 0:05:15.210 --> 0:05:20.480 content that potentially aired across OTT pay TV network consumers 0:05:20.490 --> 0:05:23.550 are subscribing to. You have online 0:05:23.580 --> 0:05:25.140 e-sports courses that 0:05:25.140 --> 0:05:25.320 are 0:05:25.320 --> 0:05:27.060 produced by entertainment 0:05:27.060 --> 0:05:27.810 providers, 0:05:28.140 --> 0:05:29.820 merchandise, EA Sports 0:05:29.820 --> 0:05:33.150 merchandise in the form of gaming chairs. Those are all 0:05:33.150 --> 0:05:34.500 coming on stream as well 0:05:35.040 --> 0:05:37.020 in that area. There will be 0:05:37.020 --> 0:05:38.760 providers on legalized 0:05:38.970 --> 0:05:43.479 sports betting. That's a new sector. You have little item 0:05:43.500 --> 0:05:45.390 premium subscription on some of 0:05:45.390 --> 0:05:49.500 these e-sports websites that's also coming on very quickly. So 0:05:49.500 --> 0:05:53.100 I think the whole range of revenue models are all possible, 0:05:53.310 --> 0:05:58.020 and because e-sports itself is a digital native activity digital 0:05:58.050 --> 0:05:59.219 business model that 0:05:59.220 --> 0:06:02.219 has worked for many parts of the world could be 0:06:02.220 --> 0:06:04.770 continuously translated into the e-sports sector. 0:06:04.920 --> 0:06:08.010 Quinoa You built your business around fan engagement on 0:06:08.010 --> 0:06:09.240 your e-sports platform. 0:06:09.450 --> 0:06:12.060 What can traditional sports learn from e-sports? 0:06:12.120 --> 0:06:17.340 Yeah, the very important differentiation of e-sports versus many traditional 0:06:17.339 --> 0:06:18.750 sports is e-sports is 0:06:18.750 --> 0:06:19.560 actually a 0:06:19.560 --> 0:06:21.330 digital native event. 0:06:21.690 --> 0:06:24.840 So during the pandemic period, you see a lot of 0:06:24.839 --> 0:06:26.130 early adopters, 0:06:26.250 --> 0:06:26.760 event 0:06:26.760 --> 0:06:28.380 organizers in e-sports, 0:06:28.529 --> 0:06:31.260 they were suffering very badly because physical events 0:06:31.260 --> 0:06:34.350 are almost impossible. That as she drove a lot of 0:06:34.350 --> 0:06:38.640 people to move online and the tournament organiser like ourself, 0:06:38.640 --> 0:06:38.940 which is 0:06:38.940 --> 0:06:40.820 completely beat flourish, flourishes 0:06:40.830 --> 0:06:43.950 very well during the pandemic event. People realise that it's 0:06:43.950 --> 0:06:48.150 actually a much bigger platform to run e-sports online and 0:06:48.150 --> 0:06:51.299 digitally because after all, imagine you could 0:06:51.300 --> 0:06:52.800 have many events 0:06:52.800 --> 0:06:57.900 over weekends or Friday nights just putting on a smartphone 0:06:57.900 --> 0:06:59.370 device or a PC. 0:06:59.460 --> 0:07:01.410 Literally, the whoa, it's the 0:07:01.410 --> 0:07:05.790 audience you could engage with, getting them to participate in tournaments, 0:07:05.820 --> 0:07:09.090 getting them to look at live streams. So those are 0:07:09.089 --> 0:07:11.370 all very, very easily done on these 0:07:11.520 --> 0:07:13.080 bases in the e-sports. 0:07:13.080 --> 0:07:16.610 While an estimated 70 per cent of gamers are kin. 0:07:16.620 --> 0:07:17.040 Wait, what 0:07:17.040 --> 0:07:19.830 are you doing to encourage more women to play e-sports? 0:07:20.130 --> 0:07:23.850 We actually what we've brands who are interested in either 0:07:23.850 --> 0:07:25.950 gender neutral audience or even 0:07:25.950 --> 0:07:28.740 female audience to promote some of the 0:07:28.740 --> 0:07:31.890 activities we have. For example, we are coming up with 0:07:31.920 --> 0:07:33.930 a female only e-sports 0:07:33.930 --> 0:07:39.060 league call Empress Arena that is very focused on encouraging 0:07:39.060 --> 0:07:40.170 female competitive 0:07:40.170 --> 0:07:42.030 gaming. Of course, the 0:07:42.030 --> 0:07:42.510 argument 0:07:42.510 --> 0:07:45.540 is also your gender equality. Maybe the emphasis 0:07:45.540 --> 0:07:45.990 should not 0:07:45.990 --> 0:07:47.130 be just female 0:07:47.130 --> 0:07:49.080 participation, but rather a gender 0:07:49.080 --> 0:07:50.220 neutral participation. 0:07:50.400 --> 0:07:52.110 We would very much like to see 0:07:52.110 --> 0:07:54.510 that, as you mentioned earlier, female 0:07:54.510 --> 0:07:58.230 participation, we currently estimate, is about 30 percent across grassroot 0:07:58.230 --> 0:08:01.380 e-sports activities, but this is growing fast. If you compare 0:08:01.380 --> 0:08:01.590 these 0:08:01.590 --> 0:08:02.610 to two or three 0:08:02.610 --> 0:08:06.060 years ago is probably half of that number. So we 0:08:06.060 --> 0:08:08.610 are seeing a lot of interest from the female fans 0:08:08.610 --> 0:08:10.920 who are now equally competitive. 0:08:11.280 --> 0:08:13.380 That will only grow because in general, 0:08:13.380 --> 0:08:13.920 that also 0:08:13.920 --> 0:08:15.270 ties to the wider 0:08:15.270 --> 0:08:17.370 gaming trend. So there are many game 0:08:17.370 --> 0:08:18.780 publishers who produce 0:08:18.780 --> 0:08:20.400 type, those that are more gender 0:08:20.400 --> 0:08:22.670 neutral. That adds a very different dynamic. 0:08:22.680 --> 0:08:26.130 I think good participation from all genders would actually give 0:08:26.130 --> 0:08:27.210 a very dynamic 0:08:27.210 --> 0:08:28.890 platform to competitive 0:08:28.950 --> 0:08:29.340 gaming. 0:08:30.000 --> 0:08:33.210 All right. Just to recap, e-sports is growing rapidly and 0:08:33.210 --> 0:08:37.230 it is increasingly being accepted as a professional sport. More 0:08:37.230 --> 0:08:41.490 brands are investing in e-sports, for example, through advertising and sponsorship. 0:08:42.059 --> 0:08:46.380 While traditional revenue models like advertising and sponsorship are here 0:08:46.380 --> 0:08:50.670 to stay. New revenue streams emerging, such as premium content 0:08:50.670 --> 0:08:54.959 for pay-TV networks and online courses I've been speaking with 0:08:54.960 --> 0:08:58.680 now can wife call fund up tournament organiser, E-sports Players 0:08:58.710 --> 0:09:04.140 League or SPL? And Kelvin Wong, market analyst at CMC Markets. 0:09:04.650 --> 0:09:08.910 And now let's talk about investment opportunities for retail investors. Kelvin, 0:09:09.000 --> 0:09:09.660 over to you. 0:09:09.780 --> 0:09:12.690 Yeah. So with retail investors can get exposure to the 0:09:12.690 --> 0:09:15.510 e-sports sector, whereas on par by a single name 0:09:15.510 --> 0:09:18.089 stocks, the whole e-sports ecosystem 0:09:18.090 --> 0:09:19.079 itself is pretty huge. 0:09:19.440 --> 0:09:20.640 So let's start with the 0:09:20.640 --> 0:09:24.060 upstream one first, which is from the game publisher companies 0:09:24.059 --> 0:09:25.620 that design and create the 0:09:25.620 --> 0:09:26.580 games like 0:09:28.230 --> 0:09:31.950 Active Visionaries at 8pm by the tech talk. So these 0:09:31.950 --> 0:09:34.080 are the popular one. On top of that, we have 0:09:34.080 --> 0:09:36.630 some hybrid company which is closer to Asia 0:09:36.630 --> 0:09:38.250 like Tencent, which also published 0:09:38.250 --> 0:09:40.320 games. But on other hand, you have other parts of 0:09:40.320 --> 0:09:42.780 the business like is on par with the global VP. 0:09:43.080 --> 0:09:44.510 Closer to home Singapore, we have to 0:09:44.520 --> 0:09:46.440 see which is the really coming off Shopee. 0:09:46.679 --> 0:09:48.359 So even though we are men, we are kind of 0:09:48.400 --> 0:09:50.970 more known to Shopee rather than being a game publisher 0:09:50.970 --> 0:09:51.720 because Asia 0:09:51.720 --> 0:09:53.300 itself at a moment. If I'm not wrong, 0:09:53.309 --> 0:09:56.190 they only publish one successful game. So on the other 0:09:56.280 --> 0:09:58.890 side of the spectrum, you have the hardware company to 0:09:58.890 --> 0:10:03.360 support the e-sports ecosystem. You are talking about the keyboard 0:10:03.360 --> 0:10:03.960 that used to. 0:10:04.030 --> 0:10:06.260 Play in combating sports esports. 0:10:06.280 --> 0:10:09.880 The mouse, this will come under Razer, you also have 0:10:09.880 --> 0:10:14.319 the semiconductor chip that actually powered the Games to 0:10:14.320 --> 0:10:15.850 have a better, higher 0:10:15.850 --> 0:10:19.209 consumer experience or competitive experience that you need to 0:10:19.210 --> 0:10:20.750 have a higher running a 0:10:20.770 --> 0:10:23.829 semiconductor chip, which is overkill. So these are the Veeva's 0:10:23.830 --> 0:10:25.240 spectrum investors, 0:10:25.540 --> 0:10:26.260 which you look at 0:10:26.500 --> 0:10:29.650 Calvin. Besides single nameplates, what are some of the e-sports 0:10:29.740 --> 0:10:32.319 exchange traded funds or ETFs? 0:10:32.440 --> 0:10:33.130 Investors can 0:10:33.130 --> 0:10:33.520 look at 0:10:33.670 --> 0:10:35.920 for investors once have a broader 0:10:35.920 --> 0:10:38.960 base approach to a more diversified basket, 0:10:38.980 --> 0:10:42.490 we'll explain. At the moment, actually free kind of a liquid, 0:10:42.490 --> 0:10:45.760 a popular ETFs exchange traded fund. The first one of these, 0:10:45.760 --> 0:10:47.679 so these factors beyond 0:10:47.679 --> 0:10:48.940 giving e-sport 0:10:48.940 --> 0:10:51.610 the ticker, then you have normal X video games, 0:10:51.880 --> 0:10:53.980 esports just right now. 0:10:53.980 --> 0:10:57.040 The Left is pretty much cheesy in because, of course, 0:10:57.040 --> 0:10:57.400 you 0:10:57.970 --> 0:10:59.890 know, and that's why we brought your 0:10:59.890 --> 0:11:02.230 Becroft Esports digital entertainment 0:11:02.350 --> 0:11:02.890 and they 0:11:02.890 --> 0:11:06.410 call it in any of the other actually offers a 0:11:06.410 --> 0:11:11.050 diversified approach in investing the esports ecosystem. Let me get 0:11:11.050 --> 0:11:15.220 sidetracked because e-sports itself are in terms of the industry 0:11:15.220 --> 0:11:17.410 that is being spent on, will be primarily on the 0:11:17.410 --> 0:11:18.309 consumer 0:11:18.400 --> 0:11:19.209 discretionary, 0:11:19.780 --> 0:11:24.670 the communications business and information technology. So these are the 0:11:24.670 --> 0:11:27.880 technology that most international investors use is 0:11:27.880 --> 0:11:29.590 actually being tracked by the S&P 0:11:29.590 --> 0:11:33.550 11 key industrial sectors. So for investors, always have a 0:11:33.550 --> 0:11:36.430 better spread across these three sectors consumer 0:11:36.429 --> 0:11:38.199 discretionary communication service 0:11:38.200 --> 0:11:38.800 and input 0:11:38.800 --> 0:11:40.150 tech. The Hue, or the global 0:11:40.150 --> 0:11:43.240 ex-Beatle games will happen more evenly spread combat 0:11:43.240 --> 0:11:44.199 to sport, 0:11:44.200 --> 0:11:47.140 which is not that close video gaming, which tends to 0:11:47.140 --> 0:11:51.220 be more heavily skewed towards communication services because I think 0:11:51.220 --> 0:11:53.079 calls about 60 percent of weightage into that. 0:11:53.140 --> 0:11:55.540 Before we wrap up the podcast Kelvin, what are some 0:11:55.540 --> 0:11:57.760 of the risks investors need to be aware of? 0:11:57.910 --> 0:12:00.429 If you guys still want to invest in a particular 0:12:00.429 --> 0:12:02.050 is possibly the stocks you've got to see. 0:12:02.140 --> 0:12:04.090 What other revenues do they have 0:12:04.750 --> 0:12:05.180 with such 0:12:05.179 --> 0:12:06.610 a robust subject to 0:12:06.610 --> 0:12:10.380 any risk of regulatory clampdown as well as on board? 0:12:10.420 --> 0:12:11.559 Tencent is not really a 0:12:11.559 --> 0:12:13.330 pure play on e-sports 0:12:13.330 --> 0:12:15.579 because Tencent itself has other revenue 0:12:15.580 --> 0:12:16.090 stream. 0:12:16.690 --> 0:12:17.199 We pay 0:12:17.230 --> 0:12:20.380 WeChat. You've got a fintech business. So Southern 0:12:20.380 --> 0:12:22.000 China Big Tech stocks that has this 0:12:22.000 --> 0:12:23.200 company emphasis 0:12:23.200 --> 0:12:27.010 on e-commerce fintech. You see the share price correct quite 0:12:27.040 --> 0:12:29.140 a fair bit. Cross about 10 to 20 percent since 0:12:29.140 --> 0:12:32.230 the peak of February due to the ongoing clampdown from 0:12:32.230 --> 0:12:34.300 the Chinese authority on the fintech 0:12:34.300 --> 0:12:35.650 business, as well 0:12:35.650 --> 0:12:37.510 as the more the plastic 0:12:37.570 --> 0:12:39.130 e-commerce behavior. 0:12:39.520 --> 0:12:41.890 And a second one will be more related to its 0:12:41.890 --> 0:12:43.030 ongoing ESG 0:12:43.030 --> 0:12:44.320 template that fund 0:12:44.320 --> 0:12:45.390 managers worldwide are 0:12:45.400 --> 0:12:46.600 being embraced 0:12:46.600 --> 0:12:47.980 to either foster directly or 0:12:47.980 --> 0:12:50.350 indirectly. So some e-sports 0:12:50.350 --> 0:12:52.540 related, at least the company that went into the betting 0:12:52.540 --> 0:12:54.040 arena, like then Broxburn 0:12:54.040 --> 0:12:56.500 got itself as a very successful betting company by focus 0:12:56.500 --> 0:12:58.689 on football and other traditional games. 0:12:58.960 --> 0:13:02.080 So we have some other companies that has that still 0:13:02.080 --> 0:13:02.470 set up 0:13:02.590 --> 0:13:03.970 shop over the years. 0:13:04.280 --> 0:13:05.380 Growth was pretty 0:13:05.380 --> 0:13:06.670 significant, but that is a sticky 0:13:06.670 --> 0:13:08.170 subject to ESG reasons. 0:13:08.179 --> 0:13:09.940 Well, raise lots of money, 0:13:09.940 --> 0:13:10.420 potentially 0:13:10.440 --> 0:13:11.920 neutral due to a lower 0:13:11.929 --> 0:13:12.339 ESG 0:13:12.340 --> 0:13:13.929 score and the top 0:13:13.929 --> 0:13:16.240 one. The reason I talk about is more internal market 0:13:16.240 --> 0:13:19.390 related risk. So if we look at the share price 0:13:19.390 --> 0:13:20.710 of the broad based 0:13:20.710 --> 0:13:24.480 ETF is what are the ETF that show beyond not here? Yes. 0:13:25.179 --> 0:13:28.330 They have come down significantly since the February or January peak, 0:13:28.330 --> 0:13:31.330 about 15 to 20 percent decline until about May. And 0:13:31.330 --> 0:13:34.990 also actually, this decline is coincident with the rise in 0:13:34.990 --> 0:13:38.740 the U.S. Treasury piano, which actually has a direct correlation 0:13:38.740 --> 0:13:41.140 with inflationary growth. I see the start of this year 0:13:41.230 --> 0:13:44.130 pretty much point out where we see commodity prices that's 0:13:44.170 --> 0:13:47.440 hiking up and start to actually float down to manufacturing 0:13:47.440 --> 0:13:52.780 input costs. So it's more like an indirect discretionary approach 0:13:52.900 --> 0:13:56.670 to growth stocks because once there's a rise in the penny, 0:13:56.679 --> 0:13:59.920 you actually indirectly the inflationary is going to go up. 0:14:00.280 --> 0:14:03.850 It will impact growth stocks across the market. Why? Because 0:14:03.910 --> 0:14:07.090 growth stocks are actually seen as stocks that has higher 0:14:07.090 --> 0:14:09.760 gearing or higher leverage. That means they need to borrow 0:14:09.760 --> 0:14:12.160 more to grow their operation. But we know that. So 0:14:12.160 --> 0:14:16.090 then is bus stocks or e-sports equities? They are actually 0:14:16.090 --> 0:14:19.570 cash rich in nature. Unfortunately, e-sports is being fought under 0:14:19.570 --> 0:14:20.859 the category of growth stocks. 0:14:21.340 --> 0:14:24.670 So do the financial markets was due to this in discrimination. 0:14:24.700 --> 0:14:25.240 If you start to 0:14:25.240 --> 0:14:27.220 see inflation stock picking up in the second half of 0:14:27.220 --> 0:14:28.870 the year, I spent the next year. 0:14:29.650 --> 0:14:30.400 If you start to see the 0:14:30.410 --> 0:14:33.220 10 year going to pick up to about two percent 0:14:33.220 --> 0:14:37.990 or more, the pressure in EA Sports related stocks in general. 0:14:38.200 --> 0:14:39.910 There you have it. The five things you need to 0:14:39.910 --> 0:14:43.630 know about investing in East. But Kenwyne Kelvin, thank you 0:14:43.630 --> 0:14:44.770 for being on the podcast. 0:14:44.980 --> 0:14:46.120 Thank you very much. It's my pleasure. 0:14:46.210 --> 0:14:49.600 Thanks, everyone. I've been speaking with Larkin Y, co-founder of 0:14:49.600 --> 0:14:54.340 Pokémon Organizer, The Players League of SPL, and Kelvin Wong, 0:14:54.340 --> 0:14:58.570 market analyst at CMC Markets. Thanks for listening and catch 0:14:58.570 --> 0:15:00.640 us again over the next five things you need to 0:15:00.640 --> 0:15:03.160 know Podcasts by the money, my team.