I’ve recently been bombarded with a steady stream of emails from Stanberry’s Sjuggerud that despite all the tariff war talk, China’s new stock market is about to take off. Anybody buy into this? I’m sadly lacking international exposure in my extremely modest portfolio, so I’m debating if this is the way to go.
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That’s a continuation of chatter from Sjuggerud over the past couple years, driven by index money and by internal Chinese demand for stocks. The index money is real, China is gradually becoming a larger part of the MSCI Emerging Markets index as more domestic China A-shares get included, and that should increase demand for those shares (as represented by the ASHR or KBA ETFs, for example).
And yes, China is preparing a stock exchange to rival NASDAQ and encourage emerging Chinese growth stocks to list in China instead of the US or Hong Kong or London. There’s an article about it here.
International exposure is important, but China-exposed investments will probably be very volatile as this trade war shakes out — China is the biggest growth engine in the world, and should remain so for quite some time, so if you want growth that’s really where you have to go… but you pay for it in opacity and lots of different kinds of risks that are exacerbated by the current talk about the trade war becoming an extended “cold war” between the US and China that cuts the business world in half.
Thanks for your detailed response!
Just received printed pamphlet written by Sjuggerud pushing http://www.ChinaNewNasdaq.com. Discounted price, $1500. Has anyone subscribed?