Equity Exposure Reduced, Morphic Asset's Wood Says

The transcript discusses the trade tensions between the US and China, focusing on Trump's concerns about trade balance and IP theft. It explores market reactions, including strategies like reducing equity exposure and shorting the Nikkei. The potential responses from China, such as increasing regulations and currency adjustments, are considered. Investment strategies are suggested, including shorting the Aussie and hedging portfolios against Asian market risks.

What was one of the main issues in the US-China trade negotiations?

• Environmental policies

• Intellectual property theft

• Military alliances

• Currency exchange rates

What strategy is being used to manage market risks in Asia?

• Focusing on European markets

• Increasing equity exposure

• Waiting for opportunities and playing defensively

• Investing heavily in technology stocks

How might China respond to the trade tensions with the US?

• By investing in US infrastructure

• By forming new trade alliances

• By increasing regulations on US businesses

• By reducing tariffs on US goods

What is a potential impact on the Australian dollar due to the trade tensions?

• Strengthening due to increased demand

• Weakening due to its links with China

• Becoming a global reserve currency

• Stabilizing due to government intervention

What is one reason China might avoid letting its currency slide?

• To encourage capital outflows

• To maintain its upgraded MSCI weightings

• To attract more foreign tourists

• To increase its trade surplus