bullish
2024 High Conviction Idea: The Case for a Rotation Out of Japan into Hong Kong - Part 2
813 Views18 Dec 2023 09:47
Boomeranged on Sun, 5 May 2024 07:35
Since we published this piece, The HSI is up 12%, the HSCEI is up 16% and the HSCCI is up 17%. Since January's bottom, when we reiterated BUY, these markets are up 24%, 30% and 26% respectively. PARADOXICALLY, AFTER THE RISE IT IS LESS RISKY TO INVEST IN THESE MARKETS. Global and EM funds underweight China will return as sentiment follows price. Any dip is to be bought.
SUMMARY
- Risk reward favours a shift in allocation between these markets.
- Hong Kong washed out from a sentiment, valuation and positioning perspective.
- Minimal investor expectations and continual disappointment have set the stage for a rally in 2024.
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