Buy Chinese Stocks?
šØš³ 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 šš¤š¤š šššš š©š¤ šš£š«ššØš© šš£ š¾ššš£š.
šļø According to Ray Dalio, š¾ššš£š šššØ š©š¬š¤ ššš¤š£š¤š¢šššØ: 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.
š» In the šš£š©š§šš„š§šš£ššŖš§ššš” ššš„šš©šš”ššØš© ššš¤š£š¤š¢š®, 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.
š° 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, "šš¤š© šš£š«ššØš©šš£š šš£ š¾ššš£š ššØ š«šš§š® š§ššØš š®." But always make sure to look at fundamentals.
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