Confessions of a ‘China Reopening’ Bag-holder
Confessions of a ‘China Reopening’ Bag-holder
The Blind Squirrel's Monday Morning Notes, May 15th 2023.
Summary
We have been “China Reopening” bulls year to date. It has largely been an ‘expensive’ point of view to hold but have we been saved by the famous curse of The Economist cover?
It’s less than a year since asset allocators told their clients that Chinese assets were un-investable. This is embarrassing, but fortunately they have an out. There is another major East Asian nation that tends to do well when China is thriving.
Japan is a great ‘first derivative’ investment for those who dare not tell their LP investors that they want back in to China. It also happens to be a cheap market relative to the rest of the world and priced in a cheap currency.
In calmer waters, on the other side of the ‘X date’ and related US political shenanigans, we shall be adding Japanese and other China-related exposures.
In the Acorn portfolio, we are excited about our new position in wheat WEAT 0.00%↑ and about the latest developments at Goldman GS 0.00%↑ , in uranium URA 0.00%↑ and…