WEBVTT - APAC Markets React to New US Auto Tariffs

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Welcome to the Daybreak Asia podcast. I'm Doug Chrisner. Transportation

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<v Speaker 2>stocks in Asia are slumping. That's after President Trump on

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<v Speaker 2>veiled tariffs on foreign made autos. This is a key

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<v Speaker 2>reason for the weakness that we had stateside in the

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<v Speaker 2>US equity market. And in a moment, we'll be hearing

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<v Speaker 2>from Robert Shine. He is the chief investment officer at

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<v Speaker 2>Blankie Shine Wealth Management. But we begin in the Lion

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<v Speaker 2>City and joining us now is friend of the program,

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<v Speaker 2>Mary Nicolas. She is Bloomberg Markets Live strategist, joining us

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<v Speaker 2>from our studios in Singapore. It's all about tariffs, isn't it.

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<v Speaker 3>It is?

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<v Speaker 2>And I'm looking at the stocks right now in Toyota

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<v Speaker 2>down more than three percent, Hondai Motor off more than

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<v Speaker 2>two and a half percent. I found it interesting that

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<v Speaker 2>you wrote earlier on the Markets Live blog there's essentially

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<v Speaker 2>no sign of leniency.

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<v Speaker 1>Well, that's the thing, because essentially what we heard is

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<v Speaker 1>especially from Hyundai. Hyundai has been praised by President Trump

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<v Speaker 1>for building a factory and expanding investment in the US.

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<v Speaker 1>Yet we haven't heard anything, and so you would think

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<v Speaker 1>that when President Trump said that there's leniency, that the

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<v Speaker 1>markets would get excited. However, it doesn't look like there's

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<v Speaker 1>much in terms of give that we've seen, so for example,

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<v Speaker 1>we haven't seen that. Sure, he's mentioned the idea of leniency,

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<v Speaker 1>but what has happened as a result, Because we know

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<v Speaker 1>that Japan and Korea would be one of the hardest hits,

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<v Speaker 1>especially in this region, at least as a result of

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<v Speaker 1>these auto tariffs.

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<v Speaker 2>I'm wondering if anything could change next week when we

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<v Speaker 2>get the reciprocal tariffs. Is that likely do you think?

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<v Speaker 2>Or not so much?

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<v Speaker 1>You know, I think the main thing is there's just

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<v Speaker 1>going to be this huge sigh of relief in terms

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<v Speaker 1>of some degree if there's a lot of tension being

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<v Speaker 1>built up or that April second deadline, and I think

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<v Speaker 1>there's going to be a little bit of relief of

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<v Speaker 1>that there's something and we know what it is. Right

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<v Speaker 1>in terms of implementation, that always tends to be a

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<v Speaker 1>little bit more muddy, but at least we get some

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<v Speaker 1>clarity in terms of what are the reciprocal tariffs and

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<v Speaker 1>who's going to be the most affected.

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<v Speaker 2>You know, President Trump has been described as being transactional,

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<v Speaker 2>and I thought it was very interesting today that he

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<v Speaker 2>said that he would consider lowering tariff rates in post

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<v Speaker 2>on China to secure Beijing support for a sale of

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<v Speaker 2>the US operations of TikTok to an American company. This

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<v Speaker 2>seems to kind of plant the thin end of the

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<v Speaker 2>wedge into the idea that this is all really a.

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<v Speaker 1>Negotiation, absolutely, and I think that was very clear in

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<v Speaker 1>the comments that he made about TikTok. So if the

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<v Speaker 1>Chinese authorities show any sort of budge, they could see

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<v Speaker 1>some signs of relief. But at the end of the day,

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<v Speaker 1>I think there's alway. Is the factor of you know

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<v Speaker 1>what if there's more and how far will it go?

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<v Speaker 1>And I think that's the key issue that was going

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<v Speaker 1>to come up in terms of like the the transactions

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<v Speaker 1>over and over is how much leeway and how much

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<v Speaker 1>given can go in these negotiations.

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<v Speaker 2>Which brings us to the China story and the fact

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<v Speaker 2>that Beijing might not have a lot of leverage against

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<v Speaker 2>the US right now. One of the bright spots, though

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<v Speaker 2>I think we can't agree mary, has been the high

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<v Speaker 2>tech space in China, particularly after the kind of deep

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<v Speaker 2>seek moment. What are we seeing right now in the

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<v Speaker 2>behavior of Chinese equities.

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<v Speaker 1>Absolutely, and I think one of the things is that

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<v Speaker 1>everyone has gotten very excited about China equities and that's

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<v Speaker 1>taken a while to really come through. And it's not

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<v Speaker 1>it's more than just policy right now. It's about the

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<v Speaker 1>tech and invation. It's about their ability to come through

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<v Speaker 1>and to make these developments and significant developments despite what

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<v Speaker 1>has some of the obstacles that have come their way.

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<v Speaker 1>So there's still a lot of support for the tech

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<v Speaker 1>industry and likely to continue. I think the problem is

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<v Speaker 1>now is that a lot of it has been already

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<v Speaker 1>baked in. Valuations aren't enough to keep this going. So

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<v Speaker 1>what it will need is more improvement on a company outlooks,

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<v Speaker 1>more innovation in terms of news about robotics and AI

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<v Speaker 1>to really drive that rally and to keep it a

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<v Speaker 1>lot more sustainable.

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<v Speaker 2>But there are some dark clouds and I think we

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<v Speaker 2>have to acknowledge them. In the US session, we had

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<v Speaker 2>TD Cowen pointing out that Microsoft is abandoning some new

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<v Speaker 2>data center projects in the US and Europe, so that

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<v Speaker 2>may turn people away from putting new money to work

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<v Speaker 2>in the SEMIS. And then, as you know, the chairman

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<v Speaker 2>of Ali Baba jod Tsai was talking about a possible

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<v Speaker 2>bubble in AI data center. So I think there's got

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<v Speaker 2>to be a little bit of caution that pointed out

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<v Speaker 2>here right, there's.

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<v Speaker 1>General caution for US tech, but I think it's because

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<v Speaker 1>the China story is quite new, especially with deep seek

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<v Speaker 1>that only came up in the start of this year.

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<v Speaker 1>But the tech, the US tech industry and innovation has

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<v Speaker 1>been a story that has carried US stocks for quite

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<v Speaker 1>some time. And of course now everyone's rethinking it because

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<v Speaker 1>of valuations, because of the cracks and US exceptionalism, and

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<v Speaker 1>because China is becoming a real competitor. So I think

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<v Speaker 1>for now, especially with China, it really comes down to

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<v Speaker 1>what are the improvements we see on company outlooks, and

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<v Speaker 1>what do we see on the improvement especially coming through

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<v Speaker 1>from the government and on policy implementation, to really drive

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<v Speaker 1>that next leg higher in the rally.

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<v Speaker 2>There's a bit of a concern I think that the

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<v Speaker 2>FED may have to given the fact that these tariffs

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<v Speaker 2>may be inflationary, that the FED may have to go

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<v Speaker 2>on hold even if there is a little bit of

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<v Speaker 2>economic weakness just because of the inflation concern. Is that

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<v Speaker 2>a concern that you share or do you think the

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<v Speaker 2>FED would opt to lower rates in the face of

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<v Speaker 2>economic weakness.

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<v Speaker 1>You know, it's interesting, it depends how the FED sees it.

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<v Speaker 1>So J. Powell had mentioned that he sees tariffs as inflationary.

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<v Speaker 1>It's a one off adjustment and then we won't see

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<v Speaker 1>anything coming through afterwards. So it would suggest that yes,

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<v Speaker 1>they'll see what happens and they'll take more of a

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<v Speaker 1>wait and see approach. So I think two one to

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<v Speaker 1>two cuts still make sense, especially with how tariffs are going.

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<v Speaker 1>But in terms it's still we still have to remember

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<v Speaker 1>that the Fed has a dual mandate. So if they

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<v Speaker 1>see that the labor market is really weakening significantly, they'll

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<v Speaker 1>see that that's going to have implications on inflation and

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<v Speaker 1>we'll have to become a little bit more aggressive in

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<v Speaker 1>terms of easing.

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<v Speaker 2>What else are you really kind of talking about in

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<v Speaker 2>your en live writing today? Is there anything that you

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<v Speaker 2>want to tease out here?

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<v Speaker 1>Yeah, Actually, there's been a lot of interesting idiosyncratics things

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<v Speaker 1>coming up in Asia. So for example in Indonesia where

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<v Speaker 1>we're seeing that a significant downside to the equity markets

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<v Speaker 1>and largely coming through from growth concerns domestically and fiscal

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<v Speaker 1>concerns as well. So and and we're seeing the implications

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<v Speaker 1>on the currency as well. So the currency has been

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<v Speaker 1>UH at the weakest that we've seen in a very

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<v Speaker 1>long time, and we're seeing and that is becoming more

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<v Speaker 1>of an issue because of the fact that you're seeing

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<v Speaker 1>cracks and US exceptionalism. The Chinese recovery isn't a strong

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<v Speaker 1>just yet, So the question is becomes more scrutinized into

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<v Speaker 1>how em unfolds, and these idiosyncratic issues become even more

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<v Speaker 1>concerning for places like Indonesia in terms of their ability

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<v Speaker 1>to entice foreign investors to keep buying into their bond

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<v Speaker 1>markets or their equity market. So I think one of

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<v Speaker 1>the main things to watch, especially with all this uncertainty,

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<v Speaker 1>especially around tariffs, is some of the idiosyncratic risks that

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<v Speaker 1>we're seeing out of emerging markets and the broader implications

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<v Speaker 1>given the weak global risk appetite.

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<v Speaker 2>What are you looking at in the week ahead? Is

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<v Speaker 2>there anything that you're paying especially close attention to?

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<v Speaker 1>Labor market? Absolutely, I think that's going to be the

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<v Speaker 1>pivotal point because everyone's been so focused on inflation, and

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<v Speaker 1>of course the April second deadline. We can't escape tariffs.

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<v Speaker 1>I think that's one thing we know so far in

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<v Speaker 1>the first three months of this year. So the tariffs

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<v Speaker 1>and I think the labor market is going to be

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<v Speaker 1>especially important.

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<v Speaker 2>Mary Nicola there, Bloomberg Markets Live Strategists joining us from

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<v Speaker 2>Singapore here on the Daybreak Gasia podcast. Welcome back to

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<v Speaker 2>the Daybreak Asia Podcast. I'm Doug Krisner. So the US

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<v Speaker 2>equity market was in retre in the last session on

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<v Speaker 2>some concern over the impact of the trade war. We

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<v Speaker 2>had the S and P five hundred down a little

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<v Speaker 2>more than one percent, and then after the bell, President

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<v Speaker 2>Trump imposed tariffs on imported autos. This is a twenty

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<v Speaker 2>five percent levy on all cars not made in the US.

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<v Speaker 2>It's going to go into effect April. Second, let's take

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<v Speaker 2>a closer look now at market action with our guest

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<v Speaker 2>Robert Shine. He is the chief investment officer at Blankey

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<v Speaker 2>Shine Wealth Management, on the line from Palm Desert, California.

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<v Speaker 2>Thanks for taking the time to chat with us, Robert.

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<v Speaker 3>I'd like to.

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<v Speaker 2>Begin by getting your assessment on the impact of tariffs.

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<v Speaker 2>Do we really know at this point whether it's going

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<v Speaker 2>to be completely negative.

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<v Speaker 4>That's the question that markets investors and everyone's trying to

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<v Speaker 4>sift through. I think this short term volatility will have

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<v Speaker 4>long term opportunity for investors that do take advantage of.

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<v Speaker 4>What we're seeing is all of this uncertainty that's playing out,

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<v Speaker 4>and you know, we've seen it the first term of

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<v Speaker 4>President Trump when the US and China they imposed Phase one,

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<v Speaker 4>then they went to Phase two, then they went to

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<v Speaker 4>Phase three, and then Trump removed it, and then they

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<v Speaker 4>finally got a deal.

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<v Speaker 3>Done towards the end.

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<v Speaker 4>But that was, you know, over a couple of year

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<v Speaker 4>period of time, and markets actually ended up higher over

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<v Speaker 4>that period of time. And if you look at the

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<v Speaker 4>S and P, there were bouts of time where the

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<v Speaker 4>S and P did test some lows, but not lower lows. So,

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<v Speaker 4>you know, if we look at the first term during

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<v Speaker 4>President Trump, there was a lot of volatility when he

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<v Speaker 4>went for the tariffs, you know, and fair trade practices,

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<v Speaker 4>but it turned out to be a positive.

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<v Speaker 2>It's interesting. One member of the FED today was saying

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<v Speaker 2>that it's not clear whether or not we're going to

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<v Speaker 2>have an inflationary impact from these tariffs proving to be temporary.

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<v Speaker 2>I'm referring here to the head of the Saint Louis FED,

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<v Speaker 2>ALBERTU Mussalom. He said secondary effects could prompt the Fed

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<v Speaker 2>hold rate steady for longer. Does he have a point there?

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<v Speaker 2>Could there be an inflationary impact of the tariffs.

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<v Speaker 4>He absolutely is of a point, and that is the

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<v Speaker 4>biggest I would say concern of the overall market, which

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<v Speaker 4>is putting. You know, we came into the year thinking

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<v Speaker 4>we're going to get two to maybe three interest rate cuts,

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<v Speaker 4>so some relief and some more sort of you know,

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<v Speaker 4>wind in the sale to keep this rally going.

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<v Speaker 3>Now, it's just.

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<v Speaker 4>The opposite of saying, wait a minute, the tariffs impact

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<v Speaker 4>on prices are an unknown, a question mark, So what

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<v Speaker 4>does that actually mean. That means that the Federal Reserve

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<v Speaker 4>obviously is keeping an eye on the labor market, which

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<v Speaker 4>seems to be holding in there. So far, so good.

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<v Speaker 4>But more importantly, it's the if they lower interest rates,

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<v Speaker 4>they are going to invite inflation, adding more fuel to

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<v Speaker 4>the fire. Is the overall concern, not only for the

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<v Speaker 4>Federal Reserve but for investors as well. Markets are playing

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<v Speaker 4>that out and it's only time will tell. Traditionally, tariffs

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<v Speaker 4>should be a one time a fact where it's you know,

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<v Speaker 4>sort of a speed bump. You pay your toll. But

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<v Speaker 4>then again, I go back to what I said earlier.

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<v Speaker 4>You know, tariffs are you know, could be imposed and

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<v Speaker 4>then they could be taken away months even years later,

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<v Speaker 4>depending upon how things are going.

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<v Speaker 2>If you look at the tape today, the chip makers

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<v Speaker 2>were the big losers, in Vidia and Gang. I'm looking

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<v Speaker 2>at the Philadelphia Semiconductor index down about three point three

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<v Speaker 2>percent today. We had analyst over at TD Cowen today

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<v Speaker 2>saying that Microsoft is abandoning new data center projects not

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<v Speaker 2>just in the US, but Europe as well, and that

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<v Speaker 2>seemed to create this negative sentiment toward the chip stocks.

0:12:38.200 --> 0:12:40.880
<v Speaker 2>Where are you right now in terms of the thesis

0:12:40.920 --> 0:12:44.400
<v Speaker 2>on AI that the buildout is going to continue or

0:12:44.679 --> 0:12:48.440
<v Speaker 2>maybe now we're reaching a point of capacity, starting to

0:12:48.520 --> 0:12:50.640
<v Speaker 2>kind of reach a near term peak.

0:12:51.559 --> 0:12:57.880
<v Speaker 4>If you saw the revenue generated by what Navidia has

0:12:58.040 --> 0:13:01.000
<v Speaker 4>had committed from just the mag seven and I mean

0:13:01.040 --> 0:13:04.280
<v Speaker 4>that's really the driver of what Navidia or even the

0:13:04.320 --> 0:13:05.480
<v Speaker 4>semiconductors if.

0:13:05.320 --> 0:13:06.920
<v Speaker 3>You will at home.

0:13:07.720 --> 0:13:11.520
<v Speaker 4>You know, they pledged so much capital and so many,

0:13:11.640 --> 0:13:16.720
<v Speaker 4>so many billions of dollars that was absolutely head scratching,

0:13:17.160 --> 0:13:20.880
<v Speaker 4>you know, for Microsoft to take a moment and reassess

0:13:21.040 --> 0:13:24.640
<v Speaker 4>how much they actually need, you know, to invest is

0:13:24.760 --> 0:13:28.240
<v Speaker 4>not uncommon. That's that's actually prudent business move. But what

0:13:28.320 --> 0:13:30.760
<v Speaker 4>I would say and submit for consideration, we are in

0:13:30.840 --> 0:13:35.120
<v Speaker 4>the early innings of the AI race ARMS race, and

0:13:35.200 --> 0:13:38.120
<v Speaker 4>so you're going to have the trickle down effect. And

0:13:38.200 --> 0:13:40.880
<v Speaker 4>by the way, there are four hundred and ninety three

0:13:40.920 --> 0:13:43.120
<v Speaker 4>other S and P five hundred companies they're going to

0:13:43.200 --> 0:13:45.199
<v Speaker 4>have to start joining the race. So there's a lot

0:13:45.240 --> 0:13:50.280
<v Speaker 4>of capacity and opportunity to be reinvesting in the semiconductors

0:13:50.320 --> 0:13:52.320
<v Speaker 4>from just not only the S and P five hundred,

0:13:52.360 --> 0:13:54.960
<v Speaker 4>but all the way down the you know, the value

0:13:55.000 --> 0:13:58.079
<v Speaker 4>stack of all the companies that want to stay competitive

0:13:58.080 --> 0:13:58.640
<v Speaker 4>for the future.

0:13:58.840 --> 0:14:03.680
<v Speaker 2>What about the lower cause Chinese AI models that utilize

0:14:03.720 --> 0:14:07.800
<v Speaker 2>a lot less computing power, is that a negative let's

0:14:07.800 --> 0:14:09.960
<v Speaker 2>say for the buildout of some of these data centers.

0:14:10.320 --> 0:14:12.720
<v Speaker 3>Yeah, we're going to see I mean every eighteen months

0:14:13.000 --> 0:14:16.880
<v Speaker 3>everything doubles in terms of you know, memory, storage capacity

0:14:16.920 --> 0:14:17.679
<v Speaker 3>and technology.

0:14:17.679 --> 0:14:19.920
<v Speaker 4>That's not you know, for a chip that comes out

0:14:19.960 --> 0:14:23.280
<v Speaker 4>today and you know there's more efficient way of doing

0:14:23.280 --> 0:14:26.520
<v Speaker 4>it for tomorrow or like you just pointed out, a

0:14:26.560 --> 0:14:30.240
<v Speaker 4>better way of using you know, getting more production with

0:14:30.440 --> 0:14:33.520
<v Speaker 4>less is always going to be in the DNA of

0:14:33.600 --> 0:14:37.400
<v Speaker 4>the capital structure of the economy, and that's the way

0:14:37.440 --> 0:14:41.400
<v Speaker 4>we need it for more growth moving forward. But yeah,

0:14:42.080 --> 0:14:44.520
<v Speaker 4>short term that it remains to be seen as it

0:14:44.600 --> 0:14:47.400
<v Speaker 4>relates to how it plays out, it wouldn't shock me

0:14:47.560 --> 0:14:51.360
<v Speaker 4>that more and more next you know, next month, next week,

0:14:51.400 --> 0:14:54.960
<v Speaker 4>and even next year, we're going to get We're going

0:14:55.040 --> 0:14:57.840
<v Speaker 4>to be able to do more with less. All across

0:14:57.880 --> 0:14:59.200
<v Speaker 4>the technology spectrum.

0:14:59.280 --> 0:15:02.000
<v Speaker 2>Let's talk a little bit about the macro in terms

0:15:02.000 --> 0:15:05.480
<v Speaker 2>of ECO data. Today we learned that factory orders for

0:15:05.520 --> 0:15:10.520
<v Speaker 2>business equipment unexpectedly declined in February, and at the same

0:15:10.560 --> 0:15:13.840
<v Speaker 2>time today, an update to the Atlanta Fed's GDP now

0:15:13.920 --> 0:15:18.360
<v Speaker 2>tracker still shows contraction in Q one by around one

0:15:18.360 --> 0:15:21.560
<v Speaker 2>point eight percent. Are you worried about recession?

0:15:22.360 --> 0:15:23.000
<v Speaker 3>Not so much.

0:15:22.880 --> 0:15:26.000
<v Speaker 4>Recession right now, but I could see, you know, what

0:15:26.080 --> 0:15:31.080
<v Speaker 4>we ideally, I think what we should have seen play out.

0:15:31.120 --> 0:15:33.320
<v Speaker 4>I think markets would have liked this a little bit better,

0:15:33.560 --> 0:15:36.240
<v Speaker 4>which is the sequence of what the Trump policy is

0:15:36.320 --> 0:15:40.840
<v Speaker 4>playing is doing right now. They should have positioned and

0:15:40.920 --> 0:15:42.840
<v Speaker 4>you know they know better than we do, but they

0:15:42.840 --> 0:15:47.120
<v Speaker 4>should have positioned the big beautiful tax bill, the extension

0:15:47.120 --> 0:15:50.600
<v Speaker 4>of twenty seventeen tax cuts as well as maybe a

0:15:50.640 --> 0:15:53.200
<v Speaker 4>little bit more what they wanted to get because they

0:15:53.240 --> 0:15:57.680
<v Speaker 4>have congressional support, you have momentum post election. Instead, they

0:15:57.680 --> 0:16:00.000
<v Speaker 4>went for tariffs, and we understand why they're trying to

0:16:00.280 --> 0:16:02.680
<v Speaker 4>offset all the ads that they want and make it

0:16:02.720 --> 0:16:05.440
<v Speaker 4>sort of revenue neutral as much as possible both in

0:16:05.480 --> 0:16:08.360
<v Speaker 4>the short and the long term and healthy wise fiscally.

0:16:08.560 --> 0:16:09.840
<v Speaker 3>That's very responsible.

0:16:10.040 --> 0:16:12.800
<v Speaker 4>But getting to point A to point B, that's putting

0:16:13.400 --> 0:16:17.280
<v Speaker 4>businesses on pause, that's putting consumers on pause. That delay

0:16:17.560 --> 0:16:21.240
<v Speaker 4>could cause or lead into a potential slow down in

0:16:21.280 --> 0:16:23.880
<v Speaker 4>what we're seeing a consumer behavior, and that's playing out

0:16:23.880 --> 0:16:24.600
<v Speaker 4>in the data.

0:16:24.720 --> 0:16:27.280
<v Speaker 3>In the short term. That's okay. Long term, yeah, we.

0:16:27.280 --> 0:16:31.120
<v Speaker 4>Could you know, basically lull ourselves into a recession because

0:16:31.120 --> 0:16:32.680
<v Speaker 4>everyone's just sitting on their hands.

0:16:32.920 --> 0:16:34.280
<v Speaker 3>Now, what gets us past that?

0:16:34.360 --> 0:16:38.160
<v Speaker 4>We do need that bill of extension of We just

0:16:38.160 --> 0:16:41.040
<v Speaker 4>need certainty, We need the tax cuts to continue. We

0:16:41.080 --> 0:16:42.560
<v Speaker 4>need to see what else is going to happen with

0:16:42.640 --> 0:16:46.880
<v Speaker 4>policy measures. Again, is there going to be business owner

0:16:46.920 --> 0:16:51.200
<v Speaker 4>incentives inside that tax bill? Therefore you'll see capital goods

0:16:51.200 --> 0:16:54.080
<v Speaker 4>in capital spending pick up again. So you know, we

0:16:54.120 --> 0:16:57.359
<v Speaker 4>could touch you know, slow down but we could reaccelerate

0:16:57.480 --> 0:17:00.440
<v Speaker 4>really quickly. We do have a strong economy. All we

0:17:00.520 --> 0:17:03.640
<v Speaker 4>need is certainty in terms of policy. So I think

0:17:03.680 --> 0:17:06.199
<v Speaker 4>Congress needs to get you know, to work. I know

0:17:06.240 --> 0:17:08.119
<v Speaker 4>they have been working, but I think they need to

0:17:08.119 --> 0:17:11.440
<v Speaker 4>get it done sooner than later, sooner than Memorial Day.

0:17:11.440 --> 0:17:12.680
<v Speaker 3>I think that would be the key.

0:17:13.000 --> 0:17:15.680
<v Speaker 2>I'm glad you mentioned the consumer there tomorrow will get

0:17:15.680 --> 0:17:19.320
<v Speaker 2>the February numbers on retail sales. We know that some

0:17:19.359 --> 0:17:22.080
<v Speaker 2>of the sentiment indicators, both from the Conference Board and

0:17:22.119 --> 0:17:25.760
<v Speaker 2>the University of Michigan have been depressed. Would it surprise

0:17:25.880 --> 0:17:29.280
<v Speaker 2>you if these numbers on retail sales were a big miss.

0:17:29.960 --> 0:17:32.800
<v Speaker 4>It wouldn't surprise me. But again, I wouldn't bet against

0:17:32.840 --> 0:17:37.440
<v Speaker 4>the US consumer. Again, we could see one month slow

0:17:37.520 --> 0:17:42.320
<v Speaker 4>down and maybe a pause. If it's two or three months,

0:17:42.320 --> 0:17:45.440
<v Speaker 4>that's a trend that's concerning. So but you know, given

0:17:45.440 --> 0:17:49.000
<v Speaker 4>all the uncertainty, the trade talks, the nightly headlines, and

0:17:49.080 --> 0:17:52.960
<v Speaker 4>given some geopolitical headlines that we've had to deal with

0:17:53.040 --> 0:17:56.160
<v Speaker 4>over the last thirty forty five days, if it comes

0:17:56.160 --> 0:17:58.679
<v Speaker 4>out to be a weaker number, that shouldn't be a

0:17:58.720 --> 0:18:01.400
<v Speaker 4>major surprise. If we see multiple months in a row

0:18:01.440 --> 0:18:04.280
<v Speaker 4>and that trend is negative. That's where we have the issue.

0:18:04.560 --> 0:18:06.880
<v Speaker 2>So we've talked about a lot of things. How does

0:18:06.920 --> 0:18:09.760
<v Speaker 2>this kind of coalesce in your mind in terms of

0:18:10.160 --> 0:18:11.960
<v Speaker 2>coming up with an investment strategy.

0:18:12.320 --> 0:18:15.000
<v Speaker 4>You know, the balance in diversification has won out. We

0:18:15.040 --> 0:18:17.680
<v Speaker 4>always keep dry powder, but it's working for us, and

0:18:18.040 --> 0:18:21.120
<v Speaker 4>you know, treasures are still paying us four percent. We

0:18:21.200 --> 0:18:26.040
<v Speaker 4>expected that, so we added some dry powder again, allocated

0:18:26.080 --> 0:18:28.480
<v Speaker 4>to some fixed income early on at the very beginning

0:18:28.520 --> 0:18:31.720
<v Speaker 4>of the year, and now quite honestly, we're taking advantage

0:18:31.720 --> 0:18:35.640
<v Speaker 4>of some great dislocation. Markets were over valued coming into

0:18:35.640 --> 0:18:37.960
<v Speaker 4>the beginning year. So for markets to pull back by

0:18:37.960 --> 0:18:41.160
<v Speaker 4>five or even ten percent, that's not unheard of. That's

0:18:41.200 --> 0:18:44.320
<v Speaker 4>actually that that's a commonplace that should happen for a

0:18:44.320 --> 0:18:44.960
<v Speaker 4>healthy market.

0:18:45.480 --> 0:18:47.280
<v Speaker 3>But don't just sit there.

0:18:47.440 --> 0:18:52.560
<v Speaker 4>Take advantage of some high quality companies, dividend compounders, companies

0:18:52.560 --> 0:18:54.800
<v Speaker 4>that will be there not only in the next six

0:18:54.840 --> 0:18:57.440
<v Speaker 4>to twelve months, but for the long term, because you're

0:18:57.480 --> 0:19:01.760
<v Speaker 4>gonna you know, you're gonna this this opportunity. I think

0:19:01.760 --> 0:19:04.359
<v Speaker 4>the headlines and the uncertainty are going to create a

0:19:04.400 --> 0:19:06.400
<v Speaker 4>lot of opportunity moving forward for investors.

0:19:06.400 --> 0:19:08.600
<v Speaker 2>So don't miss out, all right, Robert, we'll leave it there.

0:19:08.640 --> 0:19:10.440
<v Speaker 2>Thank you so much. Robert Shine there. He is the

0:19:10.480 --> 0:19:14.359
<v Speaker 2>chief investment Officer at Blankie Shine Wealth Management. Joining from

0:19:14.400 --> 0:19:20.280
<v Speaker 2>Palm Desert, California, here on the Daybreak Asia Podcast. Thanks

0:19:20.280 --> 0:19:23.879
<v Speaker 2>for listening to today's episode of the Bloomberg Daybreak Asia

0:19:24.040 --> 0:19:28.480
<v Speaker 2>Edition podcast. Each weekday, we look at the story shaping markets, finance,

0:19:28.840 --> 0:19:31.919
<v Speaker 2>and geopolitics in the Asia Pacific. You can find us

0:19:31.960 --> 0:19:36.200
<v Speaker 2>on Apple, Spotify, the Bloomberg Podcast YouTube channel, or anywhere

0:19:36.200 --> 0:19:39.280
<v Speaker 2>else you listen. Join us again tomorrow for insight on

0:19:39.320 --> 0:19:43.480
<v Speaker 2>the market moves from Hong Kong to Singapore and Australia.

0:19:43.880 --> 0:19:46.359
<v Speaker 2>I'm Doug Chrisner, and this is Bloomberg