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The bond market is sending a different signal: April PPI hit 6% (a 3-year high), 30-year Treasury yields broke 5%, and Warsh was confirmed as Fed Chair.

With 30-year bond yields rising, can investing in long-term bonds offset inflation and the continued weakness of the US dollar?

Or should one seize the opportunity of the AI wave to further improve the asset allocation structure?

The market looks so strong but when you look deeper, it’s all on the surface. Only a few names are carrying the market and it’s quite easy to actually prop them up. I am staying defensive.

The market does look unstoppable isn’t it? It keeps going up and up. Think again coz that’s what the headlines want you to believe. Smart money needs lots of exit liquidity because that’s how inflated the market is! Do the smart thing. Stay safe!

Take profits on AI euphoria. Rotate to SG banks and REITs as real rates rise. Position SG-listed names for ESR and energy security tailwinds.

The ESR is still in the early discussion phrase, continue to seat on the sideline till there is a confirmation on the benefit. Do no jump into the bandwagon in such a hype up market!

With Warsh confirmation as the fed chair, the thesis that AI going to outpowrt inflation rate is here. The AI rally will continue for the year and wealth will be generated!

The memory chips is going off the racks, LITERALLY! This is a rotation of the usual big tech to these players instead. We are in a new regime and so get ready!

With 30Y yields above 5% and PPI still sticky, hard to go all-in on long-duration tech lah — keeping some powder dry for now and watching how the rate picture develops.

The US 30-year yield is back above 5% interestingly during Trump’s visit to China. Is it a protest?🤭

If long term yield move higher, global liquidity could tighten as borrowing conditions become tougher.😖

In summary, Fed has less room to support markets and higher interest rates may start weighing on valuations again. Watch out for REITs holders 😅

AI demand is expanding across multiple sectors globally, but market optimism feels crowded now. Staying selective with strong earnings visibility and sustainable growth stories remains important amid volatility.