Jul. 12 at 2:15 PM
$JD $BIDU I would go heavily in on these if I were investing solely based on fair market value. US stocks are historically overbought and China market is grossly undervalued. But no matter what, I cant find it in me to invest and I think a lot of people feel the same way. Why?
1) China is an enemy to the US. This is based on current leadership sentiment/its close ties to Russia (US played a part here) East vs West narrative. Stealing of US tech. Covid lab narrative. Tariff/trade imbalance, etc
2) China has stated over and over their intentions to invade Taiwan. When/if this happens, will Chinese equities be confiscated like Russian equities were?
$RSX Who could risk investing in a sector that could go to zero overnight.
$YNDX
3) If Russian equities were still trading today, I would have 30% of my portfolio in Chinese holdings at current valuations. But I simply cant take that risk.
4) I could invest in Chinese equities and hedge with
$YANG, however, I could also see them halting it long.
