Huatai Securities: The performance of the US dollar and oil prices this year has been stronger than expected, while global liquidity easing has been lower than expected.

Huatai Securities' research report indicates that the current duration of the Middle East conflict and its global supply and demand impacts have surpassed the scope of "temporary" shocks, causing substantial disruptions in funding and supply in some areas. Even if the situation improves in the future, the investment strategy after April will differ from the volatile spring period. The U.S. dollar and oil prices have performed better than expected this year, while global liquidity is less loose than expected, leading to lower valuation uplift potential. The market may shift from following news headlines to returning to fundamental analysis, focusing more on material shortages, supply chain, and cash flow risks. Therefore, Huatai Securities still believes that a certain level of respect for volatility is necessary.