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All this noise is a great buying opportunity to buy Chinese companies at the cheap. Let people panic, then buy more. Doing the same with Turkish equities too. It all comes down to investment time and I'm willing to hold for a very long time. If you're investing you should too.
Chief
Well, also have to factor opportunity cost, which may be more important.
If you bought BABA January 1 of this year, you would have lost 50% of your principal, while buying MSFT you would have a 50% gain.
Don't let time horizon bias lead to a potentially bad investment in the ST
Please dig further into the facts and don’t be fooled by the news. China equity market is attractive but easily manipulated by wall-street with all the stereotypes that western media build for years to foreign investors. China has been cracked down shadow banking since several years ago, deleveraged the state owned companies for several years. Evergreen is the only large real estate company fell with several small companies bankrupted as well. The defaults rates in mortgage have also happened/allowed for some small cities. Overall China already released majority of the housing crisis by deleveraging and allowing some bubble bursted and now is facing slowdown risk. So China central bank is releasing more water to the market while FED is tapping. In the meantime Goldman and other big sharks are aggressively accumulating China real estate debt and equities. Don’t follow the fears, follow the flow of money.
I feel like I am the only one seeing this.. lol
Got it. So you don’t think this will cause a meltdown? Given how much they are ingrained with their economy and they start pulling back their debt from US?
It's already priced in most likely. Chinese equities can definitely pull back more, but I'd just buy more.
Hmm okay