EM accounts for 1/3 of global economic output and, apart from India, is also historically cheap.
And EM equities are not so strongly correlated with the USA.
I give EM the analyst rating: strong BUY!
And EM equities are not so strongly correlated with the USA.
I give EM the analyst rating: strong BUY!
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@PowerWordChill not worried about China? The economy there seems to be crumbling further and further
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@Aktienpilot_Youtube That's why you take one without China if you want to avoid the chaos. Franklin has had one on offer since December
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@Aktienpilot_Youtube You're talking to the wrong person, I'm actively buying from China right now. 😅 https://getqu.in/diliTw/
https://getqu.in/hidsG0/
https://getqu.in/CyyT6s/
https://getqu.in/hidsG0/
https://getqu.in/CyyT6s/
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@PowerWordChill I understand the speculation, but I don't trust the Chinese. I'm just saying inflated balance sheets and ghost towns
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•@Aktienpilot_Youtube What you say is absolutely correct.
I've already had a few discussions about this because (logically) most people are giving China a wide berth at the moment.
PowerWordChill comment 26.01.2024:
"(...)
Do you think a country like China can escape market forces?
Their cost of capital is exploding right now! High youth unemployment, consumption has collapsed, deflationary tendencies can be seen. The real estate crisis is not over yet. The banks don't look healthy either. In regulatory terms, the last 3 years have been a disaster and everyone is unsettled.
This is all publicly available information.
The sentiment is so gloomy that long-term investors are considering swapping their EM ETFs for EM ex-China. Institutional investors are discussing whether property rights are still sufficiently protected for foreign investors and whether the country is still investable at all.
What else is to come?
Expropriation fears are already the superlative from an investor's point of view, there's no way to top that. It reeks of the end of the world!
(...)
The potential for surprises on the upside is far greater than on the downside."
I've already had a few discussions about this because (logically) most people are giving China a wide berth at the moment.
PowerWordChill comment 26.01.2024:
"(...)
Do you think a country like China can escape market forces?
Their cost of capital is exploding right now! High youth unemployment, consumption has collapsed, deflationary tendencies can be seen. The real estate crisis is not over yet. The banks don't look healthy either. In regulatory terms, the last 3 years have been a disaster and everyone is unsettled.
This is all publicly available information.
The sentiment is so gloomy that long-term investors are considering swapping their EM ETFs for EM ex-China. Institutional investors are discussing whether property rights are still sufficiently protected for foreign investors and whether the country is still investable at all.
What else is to come?
Expropriation fears are already the superlative from an investor's point of view, there's no way to top that. It reeks of the end of the world!
(...)
The potential for surprises on the upside is far greater than on the downside."
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@PowerWordChill yes, they say you should buy when there is blood on the streets, maybe now is the time... but I'm really unsure because the geopolitical situation is also bad
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@Aktienpilot_Youtube "buy when blood flows through the streets" always sounds so abstract. But when blood flows, the roads look the same...
You only ever know later whether a crash was a chance or not 😉.
I also try not to have more than 10% China + Taiwan in my portfolio.
You only ever know later whether a crash was a chance or not 😉.
I also try not to have more than 10% China + Taiwan in my portfolio.
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@PowerWordChill Yes, I am divided 😄
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