Money Maze Podcast

148: Greed & Fear! What to Own, What to Avoid and Are We Wrong About China? With Chris Wood, Global Head of Equity Strategy, Jefferies (Hong Kong)

Jul 25, 2024

Chris Wood, global equity strategist, discusses China's ambitions, EM debt, US corporates vs government bonds, and includes gold and bitcoin in his portfolio. He warns against G7 bonds, emphasizes the importance of orthodox monetary policy, and highlights the opportunities in Asian markets. Recorded in June 2024.

42:00

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Chris Wood

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Quick takeaways

China focuses on economic dominance in Southeast Asia over territorial gains.

Geopolitical risks, particularly in the Middle East and Russia-Ukraine conflict, pose significant threats to world markets.

Deep dives

Chris Wood Discusses China's Economic Strategy and Belt and Road Initiative

Chris Wood provides insights into China's economic strategy, highlighting that China aims to bolster its economy and strengthen its regional influence rather than pursuing territorial expansion. He emphasizes China's focus on promoting a strong economy and seeking dominance in Southeast Asia. Wood discusses China's Belt and Road projects as a means to create economic linkages, highlighting the positive impacts on infrastructure development in countries like Pakistan.

China's Economic Focus Over Territorial Ambitions

01:05

Intro

3min

China's Economic Ambitions and Global Impact

5min

Exploring Economic Volatility and Japan's Financial Position

3min

Currency Valuation, Stock Markets, and Global Investment Strategy

6min

Efficiency and Investment Recommendations in Asia

2min

Bitcoin vs. Gold: A Millennial Perspective

9min

Analysis of the Impact of the US Monetary Tightening Cycle on Various Sectors

5min

Private Debt, ESG Evolution, and Sports Investments

9min

If you write a widely followed weekly piece for nearly 30 years, assessing investment risks & rewards, geopolitical implications, and extracting signals from noise, you need experience, good instincts, market nous, and the ability to talk to the right people.

The weekly piece in question is GREED & FEAR, and its author, our guest Christopher Wood, Global Head of Equity Strategy for Jefferies, in Hong Kong.

He has been ranked No. 1 Equity Strategist in the Asia Money Polls 18 times since 1996, and prior to that worked for The Economist between 1984 to 1994, during which period he was both the New York and Tokyo Bureau Chief.

We begin with Chris’s interpretation of China’s ambitions and appetite, where he explains why he sees China as less set on making territorial gains. He discusses the tectonic shifts underway which he describes as “as great as the collapse of the Soviet Union in 1991… and which are driving global military spending to record highs.”

He also covers Japan, the Yen & bond yields, widening the discussion to explain why he wants to avoid all G7 Government bonds.

He goes on to explain why he thinks good quality US Corporates will trade with lower yields than US Government bonds as their risk is lower.

He assesses the opportunity in EM debt, and their greater adherence to orthodox monetary policy. He also explains how both gold and bitcoin feature in his long term endowment portfolio. Recorded in June 2024.

The Money Maze Podcast is kindly sponsored by Schroders, IFM Investors and the World Gold Council.

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