# South Korean Tariff Hike, Samsung and SK Hynix Earnings Ahead

An episode of [Bloomberg Daybreak: Asia Edition](https://invisiblenetwork.ai/podcast/1663863437), 27 Jan 2026, 20 min.

Audio: https://podtrac.com/pts/redirect.mp3/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/58e85be7-dbb5-4043-afed-af80014dc0b3/9da79eef-a62c-49d5-b6aa-b3df0015631e/audio.mp3?utm_source=Podcast&in_playlist=27143354-63aa-4ac5-965d-af80014dc0d3

President Donald Trump threatened to hike tariffs on goods from South Korea to 25%, citing the failure of the country's legislature to codify the trade deal. Trump in a social media post on Monday said the new rate would apply to autos, lumber, pharmaceutical products and “all other Reciprocal TARIFFS.” Under the existing agreement, the president set a 15% levy on South Korean exports. It's an important week for earnings in Asia with Samsung and SK Hynix reporting results. Bloomberg's South Korean Equities Reporter, Youkyung Lee, discusses what the market is expecting. Tech names including Meta Platforms, Tesla and Microsoft all report earnings on Wednesday, with Apple reporting Thursday. Zachary Hill is Portfolio Management at Horizon. He gives his take on the big week for the Mag 7, and the possibility of another US government shutdown. See omnystudio.com/listener for privacy information.

## Transcript

[0:02] Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. Welcome to the Daybreak
[0:11] Speaker 1: Asia podcast. I'm Doug Chrisner. President Trump is threatening to
[0:15] Speaker 1: hike tariffs on South Korean goods from fifteen percent to
[0:18] Speaker 1: twenty five percent. The President cited the failure of South
[0:22] Speaker 1: Korea's legislature to approve the US trade deal. Here is
[0:26] Speaker 1: Bloomberg's josh Win Grove.
[0:28] Speaker 2: He's essentially ripping up or at least for now, the
[0:30] Speaker 2: deal and saying that's because the Korean they're slow walking in.
[0:33] Speaker 2: I should note that there were a lot of question marks,
[0:35] Speaker 2: including from what the American position was about this deal.
[0:38] Speaker 2: You know, we still, for instance, don't know what what
[0:40] Speaker 2: the shipbuilding cooperation will look like. And so this is
[0:43] Speaker 2: another case for countries that are looking at this, including
[0:46] Speaker 2: the EU and the UK that had their deals and
[0:48] Speaker 2: that then saw the Greenland tariff threat come in. The
[0:51] Speaker 2: Trump's deals aren't necessarily you know, locked in.
[0:54] Speaker 1: That is Bloomberg's josh Win Grove. Needless to say, if
[0:57] Speaker 1: they are implemented, these tariffs could have a wide ranging
[1:00] Speaker 1: impact on major South Korean companies that export to the US,
[1:05] Speaker 1: such as Hondai Motor. In so far as the overall
[1:08] Speaker 1: South Korean equity market is concerned. This week, it's an
[1:11] Speaker 1: important week for earnings. We'll hear from Samsung and sk
[1:14] Speaker 1: Heinez for a closer look. I'm joined by Bloomberg's yuq
[1:18] Speaker 1: and Lee. She covers South Korean equities from our bureau
[1:21] Speaker 1: in Seoul. Thank you for being here. Can we start
[1:24] Speaker 1: with Samsung? Give me a sense of what the market
[1:26] Speaker 1: is expecting to hear.
[1:28] Speaker 3: The market is very intensely focused on Samsung's semiconductor business
[1:32] Speaker 3: and what they're going to say about the current demand
[1:36] Speaker 3: and the future demand forecast for the semiconductor, especially the
[1:39] Speaker 3: memory area. Earlier in January, Samsung already has a given
[1:44] Speaker 3: preliminary earning saying that the fourth quarter of twenty twenty
[1:48] Speaker 3: five will see record operating profit that's almost triple from
[1:52] Speaker 3: a year ago. And now investors are going to ask
[1:56] Speaker 3: Samsung about how they see the coming year. What they're
[2:00] Speaker 3: curious about is especially how much they're going to hike
[2:03] Speaker 3: the memory prices.
[2:05] Speaker 4: You probably have heard that the world.
[2:07] Speaker 3: Is experienced shortages in memorages because there's so much demand
[2:12] Speaker 3: coming from artificial intelligence applications and data centers, and these
[2:17] Speaker 3: memory chip sectors are dominated by these Korean companies.
[2:21] Speaker 4: Two of the.
[2:22] Speaker 3: World's three largest membership makers are located in South Korea,
[2:27] Speaker 3: and Samsung is the biggest among the three. So investors
[2:30] Speaker 3: are really really curious about what Samsung is going to
[2:34] Speaker 3: say about the outlook for the memory demand and how
[2:37] Speaker 3: much price premiums they're getting from their customers, and how
[2:41] Speaker 3: much memorage they have sold in advance. These kind of
[2:44] Speaker 3: stuff are going to be the key questions that the
[2:47] Speaker 3: anamals and investors are going to ask.
[2:49] Speaker 1: So where AI kind of intersects the memory market, that's
[2:52] Speaker 1: the high bandwidth memory chips that are used as a
[2:55] Speaker 1: part of the AI functions. You mentioned the competitors that
[3:00] Speaker 1: Samsung has in sold two companies I'm thinking of SK
[3:04] Speaker 1: Heinex in particular. Do you think the results from Heinex
[3:08] Speaker 1: will pretty much mirror what we hear from the chip
[3:11] Speaker 1: side of Samsung.
[3:13] Speaker 3: Yeah, I think it's going to mirror what people hear
[3:16] Speaker 3: from Samsung. And interestingly, this time, Samsung and ESK Highness
[3:20] Speaker 3: are releasing their earnings on the same day. On the day,
[3:23] Speaker 3: this is quite unusual, but when it comes to memory chips,
[3:27] Speaker 3: both of them are dominant memory ship maker.
[3:29] Speaker 4: But what they excel at are a little bit different.
[3:32] Speaker 3: Samsung is dominant supplier of the conventional memory ships that's
[3:37] Speaker 3: called DRAM that's currently seeing shortages and huge price hikes
[3:41] Speaker 3: because Memora makers have been reducing their supply to make
[3:47] Speaker 3: more advanced chips. So these type of conventional commodity DRAM
[3:52] Speaker 3: that used to be cyclical are now seeing huge price hikes.
[3:55] Speaker 3: And this is the area that Samsung dominates, and also
[3:59] Speaker 3: ESK High provides and micro improvides. But when it comes
[4:03] Speaker 3: to ESK Heinex is the dominant supplier of the high
[4:07] Speaker 3: bandwidth memorage, investors are definitely going to more focus on
[4:11] Speaker 3: this HBM products like how advanced they are and how
[4:16] Speaker 3: the race is going to look like. Currently, ESK Heinis
[4:20] Speaker 3: has been having seen as having an edge over Samsung
[4:24] Speaker 3: in this race to supply the HPM to Nvidia and
[4:28] Speaker 3: other companies, but people think that Samsung is getting close.
[4:32] Speaker 4: To catch up with ESK Heighi.
[4:34] Speaker 3: So this rivalry between Samsung and ESK Heinis when it
[4:37] Speaker 3: comes to this type of HPM product that's really key
[4:40] Speaker 3: to this AI race is also going to be the
[4:43] Speaker 3: focus during the earnings conference call for ESK Heihis.
[4:47] Speaker 1: You can we know that the South Korean equity market
[4:50] Speaker 1: really is very much a reflection of tech industries, and
[4:55] Speaker 1: recently the benchmark COSPY was able to break above five
[4:58] Speaker 1: thousand for the very first time. This is something that
[5:01] Speaker 1: the South Korean President Lee jimung has set as a goal,
[5:06] Speaker 1: whether we're talking about chips or more broadly other types
[5:09] Speaker 1: of high tech technology. Is the President's office really trying
[5:12] Speaker 1: to support more growth.
[5:14] Speaker 4: Absolutely so.
[5:16] Speaker 3: When press current president came into office in June of
[5:20] Speaker 3: last year, there were expectations that he may not be
[5:23] Speaker 3: as pro growth because he was in as leftists, but
[5:26] Speaker 3: to the surprise of the market, he was a lot
[5:28] Speaker 3: more pro growth than most investors had expected. So President
[5:33] Speaker 3: Lee's office has been coming up with this idea of
[5:35] Speaker 3: one hundred and fifty trillion dollars worth AI fund that
[5:39] Speaker 3: would boost innovation and the future AI technology for South
[5:44] Speaker 3: Korean companies, and that has been received very positively by
[5:49] Speaker 3: investors and also by the local companies. So this type
[5:53] Speaker 3: of initiative show how President Lee's office is trying to
[5:56] Speaker 3: boost innovation and growth through the future technologies such as
[6:00] Speaker 3: AI and robotics. President Lee's office has definitely been very
[6:04] Speaker 3: pro growth and these has been one of the two
[6:07] Speaker 3: pillars along with corporate governance reform that his office has
[6:13] Speaker 3: been trying to promote.
[6:14] Speaker 1: So we were talking a moment ago about the supply
[6:17] Speaker 1: constraints of memory chips, and I'm wondering whether or not
[6:20] Speaker 1: that necessarily means that memory prices are headed higher, and
[6:25] Speaker 1: that for that reason, whether we're talking about Samsung or
[6:28] Speaker 1: sk Heinex, that their margins will likely improve going forward.
[6:33] Speaker 1: Is that a safe bet?
[6:34] Speaker 3: This is absolutely safe bet, and investors who have made
[6:38] Speaker 3: such wages from a few months ago have been making
[6:41] Speaker 3: a lot of money.
[6:43] Speaker 4: And I think the market is still catching.
[6:45] Speaker 3: Up with this narrative how much the memory prices are
[6:48] Speaker 3: in short supply and how much a price.
[6:51] Speaker 4: Hike is going to be.
[6:52] Speaker 3: Recently, a Samsung executive told Bloomber that this is going
[6:57] Speaker 3: to affect everyone from consumers and new body is going
[7:00] Speaker 3: to be saved from this memory upcoming memory price highs
[7:03] Speaker 3: because everybody uses all the devices that have memory in it.
[7:07] Speaker 3: And this is a huge change from the past when
[7:10] Speaker 3: memoryships were considered to be commodity, they were very very
[7:14] Speaker 3: sensitive to supply and demand balance, and this is type
[7:19] Speaker 3: of supply demand imbalance that we have not seen in
[7:22] Speaker 3: a few years, and that is because so many memory
[7:25] Speaker 3: makers have been using their production lines to produce the
[7:30] Speaker 3: higher end memberships that are for the AI, so they
[7:33] Speaker 3: have been running out a place to produce more conventional,
[7:37] Speaker 3: cheaper dram. Now those cheaper derams are not no longer
[7:41] Speaker 3: as cheap as before.
[7:43] Speaker 4: So during the fourth quarter.
[7:44] Speaker 3: Of last year, companies have been reporting a huge price
[7:48] Speaker 3: hikes in the memberships and I heard the clients are
[7:52] Speaker 3: willing to pay so much premiums to get the memory
[7:56] Speaker 3: because these memories are actually what they also need you
[8:00] Speaker 3: have the artificial intelligence related data centers and apps up
[8:05] Speaker 3: and running. So we've seen huge price hydering the fourth
[8:08] Speaker 3: quarter last year. But most people in the market expect
[8:12] Speaker 3: these memory price hikes to continue and possibly even at
[8:16] Speaker 3: the stronger rate that we've seen before. And this is
[8:20] Speaker 3: something that's really been exciting to the investors in Samsung
[8:23] Speaker 3: and Stay Highness because these companies used to be seen
[8:27] Speaker 3: as cyclical stocks, meaning they have cycles of ups and downs,
[8:32] Speaker 3: but a lot of these investors are now seeing that
[8:35] Speaker 3: this company would be less sensitive to these cycles of
[8:38] Speaker 3: the industry because of the memoryship price hikes.
[8:41] Speaker 4: That we don't know when it's going to end.
[8:44] Speaker 3: A lot of the animals have been saying that such
[8:46] Speaker 3: memory imbalance could continue through twenty twenty six and possibly
[8:50] Speaker 3: twenty seven. So there are expectations that such memory price
[8:54] Speaker 3: hikes will go on for a while, and it's going
[8:56] Speaker 3: to affect consumers around the world who's going to buy
[8:59] Speaker 3: the phones or PC's or other mobile devices.
[9:03] Speaker 1: Yu Kyung will leave it there. Thank you so very
[9:05] Speaker 1: much helping us understand what's at play in the memory
[9:09] Speaker 1: chip market. As we look forward to earnings in the
[9:12] Speaker 1: week ahead from both Samsung and s k Heinez Bloomberg'syuk
[9:16] Speaker 1: King Lee. She covers South Korean equities from our bureau
[9:19] Speaker 1: in Seoul. Joining us here on the Daybreak Asia podcast.
[9:29] Speaker 1: Welcome back to the Daybreak Asia Podcast. I'm Doug Krisner.
[9:32] Speaker 1: This week we'll get earnings from four of the Magnificent Seven.
[9:36] Speaker 1: We'll hear from Microsoft along with Meta Platforms and Tesla.
[9:40] Speaker 1: Those numbers will hit the tape on Wednesday. Thursday, we
[9:43] Speaker 1: will hear from Apple now. These results will offer a
[9:46] Speaker 1: glimpse into business from cloud computing and electronic devices to
[9:51] Speaker 1: software and digital advertising. For a closer look I'm joined
[9:55] Speaker 1: by Zachary Hill. Zaki is head of portfolio management at
[9:58] Speaker 1: Horizon and he is on the line from Charlotte, North Carolina.
[10:02] Speaker 1: Thank you for being here at zach What are your
[10:04] Speaker 1: expectations in terms of the earnings that we're going to
[10:07] Speaker 1: be getting this week.
[10:08] Speaker 4: Great to be with you, Doug.
[10:09] Speaker 5: I mean, I think in terms of the mag seven
[10:11] Speaker 5: what we're going to be watching, one is capex plans.
[10:16] Speaker 5: You know, obviously that's been on again, off again subject
[10:19] Speaker 5: for the market, and we do think that's going to
[10:21] Speaker 5: be scrutinized by investors, especially given some of the lack
[10:24] Speaker 5: of momentum that we saw kicked off by you know,
[10:27] Speaker 5: last earning season in October. So that's one area of focus.
[10:31] Speaker 5: And the second one is going to be around margins.
[10:34] Speaker 5: You know, as these companies are investing, investors are going
[10:38] Speaker 5: to want to see that they have revenue growth and
[10:40] Speaker 5: they can maintain their margins in the face of that.
[10:42] Speaker 5: So those are the two things for the top of
[10:44] Speaker 5: the market that we're going to be watching this week.
[10:45] Speaker 1: Yeah, it's interesting you make the point about margins. Apples
[10:49] Speaker 1: numbers on Thursday probably will tell a lot about the
[10:52] Speaker 1: pressure that this company may be facing when it comes
[10:55] Speaker 1: to memory. There seems to be a shortage right now
[10:58] Speaker 1: of memory chips globe.
[11:00] Speaker 5: Yeah, I mean that's definitely been moving some of the
[11:03] Speaker 5: sort of AI adjacent names not in the mag seven
[11:06] Speaker 5: you know, more recently, but I think more broadly as
[11:09] Speaker 5: we zoom out, you know, the fact that this cohort
[11:12] Speaker 5: of stocks that has really led the market for the
[11:14] Speaker 5: last few years is not moving as a monolithic group
[11:18] Speaker 5: is really you know, the most important development for investors.
[11:21] Speaker 5: And so we're going to be picking through you know,
[11:23] Speaker 5: these reports this week just like everybody else. But I
[11:26] Speaker 5: think we've gone from the stage of you know, the
[11:28] Speaker 5: AI trade being a sort of a beta trade a
[11:31] Speaker 5: blanket by to a little bit more of an alpha
[11:33] Speaker 5: stock picking type environment.
[11:34] Speaker 1: What do you make of the trade in precious metals today?
[11:37] Speaker 1: As an example, we had silver rallying to a record
[11:40] Speaker 1: high at one point, I think we were at one
[11:42] Speaker 1: hundred and seventeen dollars announce.
[11:44] Speaker 5: Yeah, I mean it's really been something, you know, to
[11:47] Speaker 5: take any of your expectations and blow them out of
[11:49] Speaker 5: the water. I mean, just you know, silver today, I
[11:52] Speaker 5: think we pulled back fourteen percent from the highs or
[11:55] Speaker 5: something like that. I mean, volatility is extraordinarily elevated. I mean,
[11:59] Speaker 5: you know, generally speak King Doug. Look, we completely sympathize
[12:02] Speaker 5: with this idea. There are fewer safe assets in the
[12:05] Speaker 5: world today than there were in the last five, ten
[12:08] Speaker 5: or twenty years, and so that does kind of force
[12:12] Speaker 5: long term holders that are looking to preserve purchasing power
[12:15] Speaker 5: into real assets, and certainly precious metals are part of
[12:20] Speaker 5: that have been for you know, a long long time.
[12:22] Speaker 5: You know right here, as we said, we think that
[12:25] Speaker 5: the risk reward of chasing some of this action in
[12:27] Speaker 5: the volatility we're seeing in markets is not very favorable
[12:31] Speaker 5: right now, and so we would rather you know, position
[12:34] Speaker 5: portfolios to benefit from a weeker dollar and have some
[12:38] Speaker 5: exposure to commodity producers, but you know, not direct within
[12:42] Speaker 5: the commodities themselves, given the overall volatility we've seen.
[12:46] Speaker 1: To what extent is this about politics? I mean, if
[12:49] Speaker 1: you see investors moving out of things like sovereign bonds
[12:52] Speaker 1: or even currencies and into haven's like the precious metals,
[12:56] Speaker 1: is this really a statement about uneasiness with the current
[13:00] Speaker 1: trajectory of the political landscape.
[13:03] Speaker 5: I think it's a reflection of certainly a realization that
[13:06] Speaker 5: that people are coming to that it's a little bit
[13:08] Speaker 5: of a different environment where there are more things on
[13:10] Speaker 5: the table than there had been in the past. And so,
[13:12] Speaker 5: you know, over the last year, I think we were
[13:15] Speaker 5: really blindsided by a lot of that. But you know,
[13:17] Speaker 5: the cats out of the bag at this point, and so,
[13:20] Speaker 5: you know, on the margin, we do see some changes
[13:23] Speaker 5: in behavior that are starting to occur. It's not a
[13:26] Speaker 5: wholesale you know, shun all us assets or or completely
[13:31] Speaker 5: reorient your portfolio, but it does, you know, sort of
[13:34] Speaker 5: tilt the balance of risk in favor of you know,
[13:37] Speaker 5: some parts of the market and some exposures that have
[13:39] Speaker 5: been under performers for you know, not just the last
[13:43] Speaker 5: three years, but really for the last decade. And so
[13:45] Speaker 5: we do think that's a notable development that we're watching
[13:48] Speaker 5: quite closely.
[13:49] Speaker 1: So, staying with this theme of politics, we have President
[13:52] Speaker 1: Trump and Senate Democrats. They appear to be headed towards
[13:55] Speaker 1: some type of government shutdown. Maybe there's been a lot
[13:59] Speaker 1: of revolt on the part of Democrats, particularly in the Senate,
[14:02] Speaker 1: against funding the Department of Homeland Security without new safeguards. Obviously,
[14:07] Speaker 1: that's after the killing of a US citizen in Minneapolis
[14:11] Speaker 1: by federal agents. Is there a real risk in your
[14:15] Speaker 1: mind that we could get another government shutdown?
[14:18] Speaker 5: I think if we do, it's going to be partial,
[14:21] Speaker 5: you know. Right now the talk is about splitting the
[14:24] Speaker 5: continuing resolutions apart and doing them in pieces, and so
[14:28] Speaker 5: I think that I think the market does expect to
[14:30] Speaker 5: have a shutdown this weekend, but I think belief is
[14:32] Speaker 5: is going to be you know, short and shallow, not
[14:34] Speaker 5: like the one that we just had. And certainly, you know,
[14:37] Speaker 5: as macro investors that are trying to parse the data
[14:40] Speaker 5: like everybody else, you know, we hope that's the case.
[14:43] Speaker 5: You know, generally speaking, you know, investors have looked through
[14:46] Speaker 5: this type of volatility and we do expect that to
[14:48] Speaker 5: be the case. But look, we've been flying blind on
[14:51] Speaker 5: you know, how the economy is orienting itself for quite
[14:54] Speaker 5: some time. We were just starting to catch back up.
[14:56] Speaker 5: So even a little disruption there could be you know,
[15:00] Speaker 5: pretty difficult.
[15:00] Speaker 1: I think the same could be said for the FED
[15:02] Speaker 1: in terms of flying blind right, And we've got a
[15:05] Speaker 1: rate decision this week. The FED is widely expected to
[15:09] Speaker 1: keep rates unchanged in the face of calls from President
[15:12] Speaker 1: Trump to lower rates. How do you view the Fed's
[15:15] Speaker 1: role in what what we're seeing unfold these days.
[15:18] Speaker 5: I mean, I think they want to be as out
[15:19] Speaker 5: of the headlines as they possibly can be. That's hard
[15:22] Speaker 5: to do these days. But you know, we do think
[15:24] Speaker 5: the FED is on pause. You know, they've cut one
[15:26] Speaker 5: hundred and seventy five basis points from the high. We
[15:29] Speaker 5: don't know where neutral rates are. Nobody really knows where
[15:32] Speaker 5: neutral rates are until after the fact, but it is
[15:35] Speaker 5: categorically true that we are closer to them today than
[15:37] Speaker 5: we were a year or two years ago. And so
[15:39] Speaker 5: you know, there's been a lot of insurance taken out,
[15:42] Speaker 5: and so we think the FED is going to try
[15:44] Speaker 5: to fly under the radar, you know, for as long
[15:47] Speaker 5: as possible. You know, everyone likes to watch the FED,
[15:49] Speaker 5: so that switches the drama to you know, the FED
[15:51] Speaker 5: share and that race as opposed to what they're doing
[15:55] Speaker 5: with short term interest rates.
[15:56] Speaker 1: That said, there's still policy risk when it comes to
[15:59] Speaker 1: US insurance companies. I mean, after the bell today we
[16:02] Speaker 1: had word from the government that they intend or it intends,
[16:05] Speaker 1: to hold payments to private medicare plans flat next year.
[16:09] Speaker 1: Many of the analysts that we spoke with were expecting
[16:12] Speaker 1: an increase in payments by as much as six percent.
[16:15] Speaker 1: So I'm looking at shares in many of the major
[16:17] Speaker 1: US health insurance companies down quite a bit in late
[16:20] Speaker 1: New York trading. What are the other areas where the
[16:24] Speaker 1: administration represents a bit of policy risk to publicly traded companies?
[16:29] Speaker 1: Is it something beyond healthcare in your mind?
[16:32] Speaker 5: Yeah, I mean, I think we've seen a willingness to
[16:36] Speaker 5: be more muscular in terms of intervention in markets across
[16:40] Speaker 5: a lot of sectors. I mean, just you know, if
[16:42] Speaker 5: we were having this conversation a week or two ago,
[16:44] Speaker 5: we would have been talking about the cap on credit
[16:47] Speaker 5: card rates and what that's done to some credit card issuers.
[16:50] Speaker 5: And certainly we're going to be listening to what Visa
[16:52] Speaker 5: MasterCard have to say, you know, as they report earnings
[16:56] Speaker 5: this week. But I think, you know, broadly, it's just
[16:58] Speaker 5: kind of getting back to that idea of the range
[17:01] Speaker 5: of possibilities is broader than it was in the past,
[17:04] Speaker 5: and so you know, investors need to, you know, think
[17:06] Speaker 5: about reallocating their portfolios, be more diversified, you know, look
[17:11] Speaker 5: for opportunities that are kind of out of the news
[17:14] Speaker 5: in position that way, as opposed to trying to chase
[17:17] Speaker 5: these headlines, which can be a really challenging thing as
[17:19] Speaker 5: we saw last year.
[17:20] Speaker 1: Are small cap stocks part of that strategy? I mean,
[17:23] Speaker 1: if you think that the economy is going to do
[17:26] Speaker 1: reasonably well, valuations in the small cap arena may be attractive,
[17:30] Speaker 1: and certainly they haven't been headlined grabbing necessarily. Would the
[17:35] Speaker 1: small caps space be something that you're looking at right now?
[17:39] Speaker 5: You know, that's an area that we have been looking at.
[17:41] Speaker 5: You know, we've quite frankly been a little skeptical on
[17:44] Speaker 5: this rally. We've been more optimistic about you know, growth
[17:47] Speaker 5: in twenty twenty six, and as we think about the
[17:50] Speaker 5: different ways to express that, small caps were certainly on
[17:53] Speaker 5: the menu, but given the amount of head fakes that
[17:56] Speaker 5: we've seen in that part of the market and just
[17:58] Speaker 5: how low quality they are on an index basis, we
[18:01] Speaker 5: prefer to have our exposure across the cap spectrum in
[18:06] Speaker 5: the banks in the US and then also looking internationally
[18:09] Speaker 5: for some natural resources and some smaller cap companies there
[18:13] Speaker 5: that have that you know, commodity gearing. You know, we're
[18:16] Speaker 5: we're watching the move in small caps and certainly if
[18:18] Speaker 5: we see a big pullback that that looks attractive to us,
[18:21] Speaker 5: we may change our stands, but right now we're a
[18:24] Speaker 5: little bit cautious on that very hot sector of the market.
[18:27] Speaker 1: What about opportunities offshore? Are you finding any?
[18:31] Speaker 3: Oh?
[18:31] Speaker 1: For sure?
[18:32] Speaker 5: I mean I do think that you know, flat to
[18:34] Speaker 5: lower dollar is something that we're going to be that
[18:36] Speaker 5: regime is going to is going to persist for some time.
[18:39] Speaker 5: That's not something that investors are really used to. And
[18:42] Speaker 5: so we do like international stocks for that reason. And
[18:46] Speaker 5: if you and if you like you know, if you
[18:49] Speaker 5: think that we're going to have a higher global growth
[18:51] Speaker 5: environment in twenty twenty six, and certainly we do, you
[18:54] Speaker 5: have a lot more cyclically in value oriented companies that
[18:58] Speaker 5: trade a lot cheaper than they in the US, And
[19:01] Speaker 5: so that's been a core way we've tilted portfolios over
[19:05] Speaker 5: the last year and we're continuing to do that into
[19:07] Speaker 5: the first month of this year.
[19:08] Speaker 1: Zach believe it there, It's always a pleasure. Zachary Hill
[19:11] Speaker 1: is head of portfolio management at Horizon, joining from Charlotte,
[19:15] Speaker 1: North Carolina here on the Daybreak Asia podcast. Thanks for
[19:20] Speaker 1: listening to today's episode of the Bloomberg Daybreak Asia edition podcast.
[19:25] Speaker 1: Each weekday, we look at the story shaping markets, finance,
[19:28] Speaker 1: and geopolitics in the Asia Pacific. You can find us
[19:31] Speaker 1: on Apple, Spotify, the Bloomberg Podcast YouTube channel, or anywhere
[19:36] Speaker 1: else you listen. Join us again tomorrow for insight on
[19:39] Speaker 1: the market moves from Hong Kong to Singapore and Australia.
[19:43] Speaker 1: I'm Doug Prisoner and this is Bloomberg

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