Buy Chinese Stocks?
๐จ๐ณ Everybody knows that stocks in the US $SPX500 are expensive but stocks in China look cheap with the MCHI ETF $MCHI in a bear market. Charlie Munger and Ray Dalio tell us that it is a very ๐๐ค๐ค๐ ๐๐๐๐ ๐ฉ๐ค ๐๐ฃ๐ซ๐๐จ๐ฉ ๐๐ฃ ๐พ๐๐๐ฃ๐.
๐๏ธ According to Ray Dalio, ๐พ๐๐๐ฃ๐ ๐๐๐จ ๐ฉ๐ฌ๐ค ๐๐๐ค๐ฃ๐ค๐ข๐๐๐จ: The State Capitalist economy and the Entrepreneurial Capitalist economy. In the State Capitalist economy, we have State-Owned companies such as China Mobile and the Chinese banks. These companies are usually safer and are currently very cheap.
๐ป In the ๐๐ฃ๐ฉ๐ง๐๐ฅ๐ง๐๐ฃ๐๐ช๐ง๐๐๐ก ๐๐๐ฅ๐๐ฉ๐๐ก๐๐จ๐ฉ ๐๐๐ค๐ฃ๐ค๐ข๐ฎ, we have companies such as Alibaba $BABA , NIO $NIO and Qudian $QD . These stocks are normally volatile and are correlated with the NASDAQ $NSDQ100 since many are them are listed there.
These two economies rarely compete with each other. Qudian will never replace the banks and only act where their services are limited.
๐ฐ It is riskier investing in China than investing in the US but it can be worth it since China is growing faster than the US and stocks are much cheaper there. To quote Ray Dalio, "๐๐ค๐ฉ ๐๐ฃ๐ซ๐๐จ๐ฉ๐๐ฃ๐ ๐๐ฃ ๐พ๐๐๐ฃ๐ ๐๐จ ๐ซ๐๐ง๐ฎ ๐ง๐๐จ๐ ๐ฎ." But always make sure to look at fundamentals.
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Full China Analysis:
https://ishfaaqpeerally.teachable.com/courses/662813/lectures/12745105
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