KGI Asia analysis believes that the S&P 500 index is less than 1% away from its previous all-time high. In addition to the push from AI, the performance of the components of the S&P 500 has also been outstanding. As of February 14th, 78% of the companies that have reported fourth-quarter earnings have exceeded expectations, with an average profit margin of 7.53%, similar to the previous quarter. Consumer staples and technology sectors have performed well, while real estate and utilities have lagged behind. Although the situation of large-cap stocks in the US is good, the stock market often experiences ups and downs, and investors should take advantage of low points to enter the market or diversify their investments. The bank pointed out that the expected economic growth in emerging Asia is strong. India's growth rate is estimated at 6%, and the local central bank even expects it to reach 7%, driven by the significant role of the young population in future development and domestic demand. In addition, Japan is another country of great interest. Japan is no longer an emerging market in development. Driven by rising inflation, a weak yen, and policy support, the Japanese stock market has performed well over the past year, breaking out of its slumber. Japan's inflation has been above 2% for over a year, but policies are expected to continue to support the economy, and the Bank of Japan may need to adjust its policies in a timely manner. Some Japanese stocks benefit from the AI concept, with the Nikkei index reaching a near 34-year high led by financial and technology stocks. The potential of emerging Asia should not be underestimated, but there are many variables in developing countries. Investors should consider this as a satellite allocation and adjust the allocation according to their risk tolerance. KGI Asia stated that the yield on the US 10-year bond has risen to around 4.3%, the last time it reached this level was in 2007. Investment-grade bonds generally have longer maturities and lower default rates, but they are sensitive to interest rates. It is expected that the next two years will enter a rate-cutting cycle, with a shift towards loose policies. Investment-grade bonds may be one of the beneficiaries, and the longer the maturity, the more sensitive the bond price is to changes in interest rates. Investors should select bonds based on their risk tolerance.