Huawei’s Undersea Ventures and Global Internet Security Many intelligence analysts and agencies around the world are concerned that Chinese tech giant Huawei, as it sells hardware, software, and services around the globe, is working hand-in-glove with the Chinese government to further its geopolitical ambitions. These concerns are not limited to Read more…
As our regular readers know, we like to point out that the Chinese stock market’s performance is much more closely related to retail investor sentiment than are other major world markets. This is because the Chinese domestic stock market (“A sharesâ€) is relatively small compared to the Chinese economy, relatively Read more…
Market Summary for Week of February 22, 2019 This week we are keeping it short. We remain bullish on the U.S., and on several foreign markets. The U.S. market is still a buy, in our opinion. Breakouts of the type we have recently seen offer opportunity for higher U.S. stock Read more…
Getting Bullish on China After a dismal 2018, the Chinese stock market has been one of the world’s better performers in 2019, with the MSCI China index up almost 13% as of this writing. Source: Bloomberg LLP As we have noted in several recent letters, the poor performance of the Read more…
Some GDP Deceleration, But U.S. Corporates and Consumers Are Still In Good Health The partial government shutdown in early 2019 has delayed the Commerce Department’s official report on fourth-quarter U.S. GDP growth until February 28. In the absence of official data, polls of economists are providing some picture: about 2.6% annualized Read more…
China’s fourth-largest bank, the Bank of China (not to be confused with the state bank, the People’s Bank of China) issued $6 billion worth of perpetual bonds in late January. A “perpetual bond” is a bond with no maturity date; that is, it simply pays an income stream forever. The Read more…
Here is another note in our ongoing series of articles addressing China’s economic situation. Many times in the past, we have pointed out that official Chinese economic statistics can mislead analysts, and we suspect that we’re about to see a manifestation of that problem. Here’s why. At the beginning of Read more…
The U.S. Market and Economy The U.S. economy is strong, although slowing from the very rapid growth of 2018. For 2019, we anticipate economic growth of 2.3% before inflation and 4.1% after inflation. U.S. stocks are in a volatile state with slow appreciation toward a rising market overall for 2019. Read more…
The Chinese growth slowdown that we’ve commented on in recent letters — which was underway well before the beginning of escalated trade tensions last year — will probably lead regional central banks to ease, or to remain steady rather than tightening monetary conditions in 2019. While China has done some Read more…
The trade conflict is still underway; we just read this morning about the statement made by China’s vice president, Wang Qishan, criticizing the U.S. administration’s trade policies at Davos. We continue to believe that a deal will be reached in the near term on the disagreements that are easier to Read more…
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