Geopolitical Risks - The Middle East geopolitical situation is deteriorating, with the U.S. military conducting airstrikes on Iran's oil export hub, which may escalate tensions further[13] - Concerns over inflation are expected to suppress global macro liquidity, impacting market sentiment and asset performance[15] Asset Allocation Recommendations - Overweight Chinese equities due to lower risk premiums and a more diverse market structure, which is seen as a key driver for capital market transformation[16] - Recommend overweighting gold as a hedge against geopolitical uncertainties, with central banks and large asset managers continuing to buy gold, supporting long-term price stability[17] - Suggest overweighting oil due to geopolitical tensions affecting supply, particularly with declining oil inventories in major economies[17] Bond Market Insights - Inflation expectations are likely to suppress long-duration bond performance, making mid-duration bonds more attractive compared to long-duration bonds[16] - The U.S. economy is showing signs of marginal convergence but has not stalled, with a moderate cooling in the labor market and wage growth, which may lead to a gradual decline in U.S. Treasury yields[16] Commodity Market Outlook - Industrial commodities, particularly copper, are expected to see increased demand driven by construction, electric vehicles, and AI expansion, despite rising development costs[17] - The global order is rapidly restructuring, making safety a scarce resource, which further supports the case for gold as a protective asset[17] Performance Metrics - The tactical asset allocation portfolio achieved a cumulative excess return of 6.62% and an absolute return of 11.10% as of March 15, 2026[21]