The economy has been having some problems. Recently some of the numbers have been picking up again but I don't see great inflation pressures.

European debt is pricing in a perennial recession. Sooner or later the European economy will revive and then we will see bond prices fall. On a relative value basis, we much prefer to hold Singapore bonds.

The changes in the currency regime in China may sooner or later impact U.S. assets and the U.S. currency in favor of other geographical blocs and their assets such as Asian bonds.

The panic is actually causing more problems and if we continue this way, in the next week, our economy would be badly affected.

The economy is growing at a reduced but healthier pace. We don't anticipate any inflation problems, and corporate earnings are going up, up and away. So, yes, we're still bullish.

Turning around the severe structural problems of the Japanese economy will take a few years of sustained effort.