Angelina Lai

Inflation-linked bonds offer cheap protection against inflation risk because breakeven levels are at reasonable levels. The manager has been adding more inflation-linked bonds to portfolios as a hedge.

Real yields on long-term U.S. bonds are at multi-year highs, making fixed income attractive relative to the narrow, highly valued equity leadership. She is happily compensated in fixed income given equity volatility.

The Aussie dollar you're right, with energy, with mining capabilities of Australia, that does subtly seem to be the only FX diversification trade currently. While the USD is the primary haven, investors seeking FX diversification away from the dollar can look to the Australian Dollar. Australia's status as a net energy and commodities exporter means its currency fundamentally benefits from elevated global resource prices. LONG FXA as a commodity-backed currency play that hedges against Middle East energy disruptions. A broader Asian economic slowdown, particularly in China, caused by high oil prices could severely reduce demand for Australian exports.

Certain trades such as infrastructure... as well as small caps have really good absorbing some of these losses. During geopolitical shocks, reactive selling of broad indices leads to poor entry points. Structuring portfolios with domestic-focused small caps and infrastructure provides insulation from international supply chain disruptions and mega-cap tech volatility. LONG PAVE and IJR as defensive, domestically insulated allocations against international geopolitical volatility. A severe global recession triggered by sustained high energy prices could eventually drag down domestic small caps and halt infrastructure spending.

Certain trades such as infrastructure... as well as small caps have really good absorbing some of these losses. During geopolitical shocks, reactive selling of broad indices leads to poor entry points. Structuring portfolios with domestic-focused small caps and infrastructure provides insulation from international supply chain disruptions and mega-cap tech volatility. LONG PAVE and IJR as defensive, domestically insulated allocations against international geopolitical volatility. A severe global recession triggered by sustained high energy prices could eventually drag down domestic small caps and halt infrastructure spending.