Thomas Poullaouec, head of Multi-Asset Solutions, Asia Pacific, and his team issued a report.NewcasinositesnodepositbonusThe Fed is expected to cut interest rates twice this year and begin to cut them in July, but there is a risk of being hawkish. Pryce pointed out that due to stable growth and moderated inflation, positive earnings trends and the expectation that the market rally will expand to stocks other than large-cap stocks, it will further enhance the high allocation of stocks.

Pryce pointed out that recent US data reflect the persistence of inflationary stickiness, adding to market concerns about the Fed's delay in cutting interest rates. With inflation and employment data rising unexpectedly for the third time in a row, it will be difficult for the FOMC to prove the need for interest rate cuts in June and to stick to its expectations of three interest rate cuts in its March economic forecast summary.

The bank expects the Fed to cut interest rates twice this year, but the FOMC may not be in a position to cut rates this year if inflation and labour market data do not improve significantly before the July meeting.

Plais further premium stocks, retaining inflation-hedging assets in fixed income to cope with rising inflation, while reducing the allocation of long-term bonds, as US bond yields are still likely to rise further. The bank maintains a high allocation of high-coupon and emerging market bonds because of the attractive level of US bond yields and basically reasonable support.