Dr. Alan O'Sullivan

I actually interviewed Diego Perea as well of Cordriga.

Yeah, yeah.

Also, fixed income is dead really as a portfolio diversifier in an inflationary environment because it works in this disinflationary environment, yields down, prices up.

But where is the diversifier in this inflationary environment?

And then we get into portfolio construction, adding gold to reduce your risk in a portfolio portfolio.

They're both similar volatility profile, but gold is a good hedge against equity market risk during stressed environments.

But it's really interesting because you try and have a conversation with a client.

I mean, we're having a fairly sophisticated conversation now, but you're trying to have a conversation with a client.

and trying to explain that we actually need to increase your volatility to reduce your portfolio risk.

Yeah, it's a great analogy, isn't it?

The prop story.

I'll be using that now for sure.

Yeah, I boxed for a number of years, and that has kept me in shape.

But just in relation to your point, Louis, about the changing circumstances, the changing economic environment, I'm reminded of a very good quote I heard from Jeffrey Gundlach a couple of years ago.

He was giving one of his speeches saying,

And I'm going to butcher this now, right?

But he basically said that he asked the question, what if everything we know has been informed through a belief of a set of circumstances, an environment where relationships existed that no longer exist?

Where what about if our sample, our sample size of the last 40 years was based on a disinflationary environment and all those relationships between those various variables, they don't exist anymore.

And that speaks to what we've been talking about, I think, for the last 20 minutes.

In relation to China, obviously you're based in Hong Kong.