IT'S A DEFLATIONARY EPOCH:

[Chief Investment Officer Xian Chan) pointed out that while U.S. consumer price inflation remained high at an annual 5.4% in July, the 10-year U.S. Treasury yield has declined, indicating that markets have "nothing to fear but fear itself" when it comes to inflation.

"There is normally a direct relationship between bond yields and inflation expectations. If inflation is expected to be higher, then bond yields go up to reflect the likelihood of higher interest rates. But interestingly, bond yields have come down after peaking in April," Chan said.

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