Shanghai Returns (ITD)

[Galli]

@purealpha

This guy is smart. The obvious move as the US continues to fall apart and become more desperate; short overvalued S&P and long CSI300. Yet this trade makes delusional American heads explode, note the silly use of the word “unlikely”. China is winning, and they will likely keep winning, there is nothing unlikely about it.

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And in his search for a haven from the turmoil he sees coming, Wu has lit on an unlikely target: China. Penjing’s $170 million pan-Asia fund of hedge funds will increase its allocation to China to as much as 35 percent from 20 percent, Wu said in an interview.

“China is a very unloved market for the rest of the world,” said Wu. “China is about 20 percent of the world’s market cap, but foreigners basically don’t own anything. That means everyone in the world is underexposed to China.”

If “you’re still trying to use the same strategy as the ’80s to jump start the economy, I am very skeptical,” he said. “The economy is already on steroids. If you are talking spending more to create growth and create jobs, I don’t think that’s feasible.”

Trump Concerns Have Hedge Fund Investor Lifting China Allocation

The obvious move is always the wrong one. You know this.

China is going to have to deal with trump for the next 4-years and it’s not going to be pretty for either side. Even though China may be on a path to take over USA as the primary superpower, to get there they have to address the elephant in the room and that’ll come at some sort of cost. Whether it be a smaller trade surplus with the US or fundamental change (acceleration of change rather) in the primary focus of the economy, it’ll need to happen for their next phase to being.

The US is a bloated diabetic with a lot of debt but still has a mean stomp if you’re not careful. China is good, but not perfect.

[igor555]

im seeing the Dec 8 dividend was omitted?

and no short term/long term cap gain payouts in 16?

[system]

is ASHR the best lockdown ETF to get exposure to the Chinamen?

[system]

@Galli

The obvious move is always the wrong one. You know this.

It’s not obvious to Westerners though, they’ve never even thought of this move. So I’m doing in the not obvious move, which is not always the wrong one.

@StallionDis

is ASHR the best lockdown ETF to get exposure to the Chinamen?

For 'Mericans it’s basically the only ETF. There’s a currency hedged version too, but not sure if anyone trades that.

[Galli]

@purealpha

@Galli

The obvious move is always the wrong one. You know this.

It’s not obvious to Westerners though, they’ve never even thought of this move. So I’m doing in the not obvious move, which is not always the wrong one.

I’ve been struggling with that notion, am I in the majority or minority?

Trade against trading against leads me where?!

[igor555]

https://www.bloomberg.com/news/articles/2017-01-16/china-shares-head-for-longest-losing-streak-since-august-2015

[system]

2018 update: some of my favorite names are back at 2014-2015 buying levels.

Citic Securities (600030, A-share)

Great Wall Motor (2333, H-share)

But other good stuff like SAIC Motors and QuingDao Haier have not come down at all. Gotta pick thru it and exploit the irrational moves (of which there are plenty as usual).