I have a few questions regarding china. I am an investor in china and bought baba at $99.Â
1. if you have been more upbeat on china's economic prospects, why is it that you will not be touching the china stock market for a long while? is it because the world will be on synchronised global recession, making it difficult to invest in china at this time.Â
2. Do you think i should average down in investing in china?
3. Do you believe china can escape the same economic fate as japan in the long run?
4. Lastly, how do you see china's long-term economic future ahead?
5. Lastly, if i just invested in china recently, is it advisable if i hold it over long run?
Â
Â
Dear sir,
Â
It is important to understand one thing about China: it is not a hyper-financialised economy like the US where stocks are considered (wrongly) a yardstick of the performance of the real economy.
Furthermore, the government's focus isn't to keep financial asset prices inflated since this diverts liquidity from more productive uses in the real economy as a consequence valuations are not bloated like they are elsewhere.
Personally, I am very bullish on China in the long term, but still, I believe this will be reflected in an increase in stock prices when the situation in the global market changes and capital will be allocated again based on fundamentals not on other metrics mainly driven by speculation.
I am not invested in any stock whatsoever for the time being and I am afraid I cannot advise you on that, maybe this article can help you to understand China market dynamics better:
