A China update
The Chinese domestic economy remains sluggish with tech exports the only growth area, which could be threatened by EU EV import restrictions and the continued trade war with the US.
Market spotlights
A China update
The Chinese domestic economy remains sluggish with tech exports the only growth area, which could be threatened by EU EV import restrictions and the continued trade war with the US.
AI/tech names were under pressure early in Q3, but domestic Chinese names fell as well in October leaving the entire market oversold.
Episodic Chinese government support of its equity market leave stocks generally still overvalued, providing less attractive entry points.
Increased input costs are keeping oil and chemical costs high, hurting many old economy industries.
Chinese hedge fund managers remain highly selective and continue to avoid taking on too much directional beta exposure here. However, high quality Chinese consumer, education and internet platform stocks are starting to see a bid here to take advantage of oversold conditions, but the long-term story remains checkered.
This commentary is for informational purposes only and is not a solicitation. Past performance is not indicative of future results. Opinions expressed are those of Masterpiece Advisors, LLC as of the date of this commentary and are subject to change.
Weekly market notes every Friday from Aaron Sweeney after the closing bell.