We are seeing a typical knee-jerk reaction from traders to positive comments from President Trump about a potential peace agreement. Equity futures are higher, the U.S. dollar is softer, and bonds and oil are moving. However, investors really want to hear from the Iranian side. Over the past three months, there has been a disconnect between what they hear from the U.S. side and the Iranian side. Until they get clarity and details on a deal from the Iranians, investors will hold back and not go all guns blazing back into risk assets, particularly oil.

It's not just what we see in the futures market; it's the oil products as well. There are tremendous drawdowns in a variety of oil products, like jet fuel, which is much higher than what you see in benchmarks. That needs to be addressed, and it comes back to things flowing through the Strait of Hormuz. Until we get back to a situation where that is freely flowing as it was before the war, investors will not be making major decisions on energy products.

For the moment, companies involved in delivering chip products and hardware for AI themes are producing extremely good profits. Although expectations are extremely high, we are getting tremendous profitability from Korean, Taiwanese, and U.S. companies. They are actually delivering on that score. Investors are enjoying it, and as long as that momentum goes, you will probably see a good performance continue. When the KOSPI reopens today, it will probably jump much higher. It is a self-fulfilling situation at the moment, but ultimately, the companies do need to produce the profits. They are spending a lot of money on development. That could continue for quite a while. A tipping point will be when the outlooks do not match what investors have priced into the market. We have not reached that stage yet, and it looks like we will get through this earnings season and probably well into the third quarter before people are too worried about it. The momentum in that sector is so strong that most portfolio managers cannot ignore it and need to go with the flow. Today is not the day for questioning the high concentration, but clearly, that is one of the risks we are getting—that just a few stocks drive this move. At some stage, people will say we are all holding the same thing and we are all overweight, and there will be a reversal, but not just yet.