PwC released its latest report, stating that due to sustained economic growth, continued positive trends in profits, and reasonable valuations (with the exception of certain highly concentrated areas), PwC maintains a bias towards high equity allocation and has raised Asian emerging market stocks to a high allocation level. As a manufacturing base, Southeast Asia is more competitive than Latin America; South Korea and Taiwan are expected to continue benefiting from valuations and artificial intelligence order cycles, respectively. In terms of fixed income, PwC has a higher allocation level for global high-yield bonds, emerging market bonds, and Asian credit. Compared to bonds, there is a moderately high allocation for cash, as cash provides liquidity and attractive returns, especially given the expectation that the Federal Reserve is unlikely to cut interest rates until later this year. PwC believes that the Federal Reserve's efforts to control inflation are the main factors driving up US Treasury bond yields, but the recent rise in yields is due to weak demand at Treasury auctions as investors remain cautious about the increased future supply of US bonds. As the US presidential election approaches in the second half of this year, the market has low expectations for significant party control of spending or resolving US debt issues, as US debt has exceeded 120% of its Gross Domestic Product (GDP). Rating agencies have pointed out that high US debt levels have led investors (especially foreign investors) to demand higher yields to compensate for the increased risk of more bond supply. While some commentators suggest that massive spending by the US government supports economic growth and investors need not worry, the spillover effects could impact the private sector, potentially causing crowding-out effects, affecting private sector demand, and raising borrowing costs.