𝑳𝑜𝑛𝑔 𝑜𝑟 𝑺ℎ𝑜𝑟𝑡? (term, that is)
The head of the China Banking and Insurance Regulatory Commission, Guo Shuqing has warned that global financial markets are in a bubble. Mr Guo observed that “US and European markets are trading at high levels which “runs counter to the real economy” and that he’s “worried the bubble problem in foreign financial markets will one day go pop.”
While we’ve seen US and European markets recover from the start of the pandemic with an aggressive surge in prices, while real indicators of economic health, such as unemployment and small business failures are also rising.
China is one fo the few countries to have avoided a recession during the pandemic, though data from February does show that factory growth slowed. The Caixin purchasing managers' index fell to 50.9 from 51.5 in January, coming in below expectations of 51.4.
Any short term dips in the Chinese economy worry me considerably less than in the more developed US or European market, despite there being some dependancy owing to global trade.
$RDSB.L (Royal Dutch Shell B) and $BP.L (BP) have dropped 1.8% and 2.3% respectively, while mining giants $AA.L and $RIO.L (Rio Tinto) dropped 0.6% and 0.4% respectively.
This would be a better time to buy into the dip in Eastern markets to capture as much value as possible from the coming recovery as things start easing back into free movement. Some of the stocks that I’m bullish on are:
$9926.HK (Akeso Inc)
NIO ... Show More