CFAA Spotlight | Brewing US-China trade war spooks asset managers

CFAA Spotlight | April 2018

Brewing US-China trade war spooks asset managers.

China’s world-class tech giants, Alibaba and Tencent, have market values of around $500bn, rivalling Facebook’s. China has the largest online-payments market. Its equipment is being exported across the world. It has the fastest supercomputer. It is building the world’s most lavish quantum-computing research centre.

Because the China A-Share market is uncorrelated, under-researched, and inefficient, investment opportunities should abound for active managers committed to fundamental research.

The Seattle company, which has expanded from online commerce to cloud computing and entertainment, is exploring new ventures and capabilities that could give it more power in a payments industry currently dominated by banks and card networks such as Visa Inc. and Mastercard Inc.

In Edwards’ scenario, U.S. Treasuries will eventually sport negative yields, the stock market will plunge below the previous lows of 2009, and corporate debt prices will fall.

 

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