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Investment Solutions Forum 2019 HK - Highlights - David Lai

David Lai of Premia Partners

Sep 23, 2019

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1. What are the challenges and opportunities for this industry?

Video transcript

1. What are the challenges and opportunities for this industry?

Investors are facing a big challenge in the market, in the sense that, one thing is the recession fears in the market. Because the investor U-curve is indicating the US market, the economy, may be facing a very big challenge going forward. At the same time, the stock market has been quite stretched in terms of valuation. If they look at the risky side of assets, let's say the emerging market, they are also worrying about a trade war happening between the US and China. It seems to be a very lengthy issue, which cannot be fixed quickly at the moment. The third thing they are facing, the big challenge, is that negative-yielding debt is getting more and more. Right now, it accounts for around 30% of the total investment-grade fixed-income area. “What should the investor do in this market?” is a big question right now.