KraneShares' Brendan Ahern: Is China Investable? | #535
The Meb Faber Show - Better Investing
Disparity of Observation: Real Economy vs. Market Sentiment
China remains a focal point for emerging markets, significantly influencing global market indices. Despite visible economic activity in cities like Hong Kong and Shenzhen, where streets are bustling and life appears normal, the stock markets have seen substantial downturns, indicating a stark contrast between real economic conditions and market confidence. This paradox has led to investor capitulation, where significant sell-offs occurred following a derivative-induced meltdown in January, prompting a significant exit from Chinese equities. However, recent rebounds in major indices suggest a potential recovery, outperforming major U.S. benchmarks, indicating underlying improvements that may not yet be recognized by the broader investment community. This situation highlights the opportunities in undervalued investments as market sentiment shifts away from previously favored assets.
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