Last week, we described briefly some longer-term economic and political dynamics that render China problematic as an investment destination for us. As we noted, while Chinese equities may sometimes make an attractive tactical trade for investors who are so inclined, we think that’s all they should be, and that the longer-term risks, particularly of yuan devaluation, preclude a positive long-term assessment of China’s risk-reward profile.
That was a bit gloomy, but we thought we’d get it out of the way first. This week we move on to the Asian investment destinations we are particularly optimistic about for the coming year: Japan, a note on Korea. Next week, we’ll discuss India.
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