Buy when there is maximum fear or blood on the streets
Updated
Before, investors were afraid to touch Russia market but then again, other than its ETF, many retail investors in Asia are quite unlikely to be acquainted with this ETF. Now , 2 years have passed and the war is still ongoing but few cares about the outcome and impact (if any) on the stock market.
Now, all eyes are on China, a too big country to miss anyway! We see from the weekly chart that it has reached a triple bottom formation and rebounded nicely upwards. It is still very much undervalued imo and the risk/rewards is tremendous if all things are working nicely for China.
It would not be a straight line up though we had seen very strong upward trajectory in the last 4 weeks in the HSI.
2nd half of this year, I expect more stimulus to come from the Chinese government to continue boost consumer confidence. The faster they put a floor on the property market bottom, solve the unemployment issues , the faster the consumers will return to the stock market. Retail investors are hoarding up cash in the trillions instead of spending after the recent Covid Saga plus the implosion of the property market (many many got burnt)
It will take some time so be patient ....There will be resistance along the ways but knowing the resilience of the Chinese government, I believe the bull market has return and moving forward, it will be better for everyone.
I am vested in this index so please DYODD
Now, all eyes are on China, a too big country to miss anyway! We see from the weekly chart that it has reached a triple bottom formation and rebounded nicely upwards. It is still very much undervalued imo and the risk/rewards is tremendous if all things are working nicely for China.
It would not be a straight line up though we had seen very strong upward trajectory in the last 4 weeks in the HSI.
2nd half of this year, I expect more stimulus to come from the Chinese government to continue boost consumer confidence. The faster they put a floor on the property market bottom, solve the unemployment issues , the faster the consumers will return to the stock market. Retail investors are hoarding up cash in the trillions instead of spending after the recent Covid Saga plus the implosion of the property market (many many got burnt)
It will take some time so be patient ....There will be resistance along the ways but knowing the resilience of the Chinese government, I believe the bull market has return and moving forward, it will be better for everyone.
I am vested in this index so please DYODD
Note
A bit disappointed that not too many international investors are onboard this China bull rally yet......but that has always been the case. The early adopters spotted it and went in and when enough media attention is given, the late adopters came in before the mass join in the party to buy at higher price
The hedge funds who continues to believe China is too difficult to invest, red tapes aplenty, etc will continue to sit on the fence and run the risk of an overvalued US market which may have limited time to top its game (Election time) before we possibly see a relatively large correction , hopefully not a crash
Note
profit target 1 achieved
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