Godfather of emerging market investment: optimistic about Chinas new infrastructure Biden or negative US stocks

category:Finance
 Godfather of emerging market investment: optimistic about Chinas new infrastructure Biden or negative US stocks


To be sure, the current political situation in Washington is complex, and Biden may not be able to fulfill his wish. After the election, Republicans still hold a majority in the Senate and expand their seats in the house of Representatives. Therefore, Bidens tax increase bill is more difficult to pass in Congress.

I think the global market will have a big V-shaped rebound next year. There are three reasons. First of all, the research and development of the new crown vaccine is progressing smoothly. Secondly, more and more effective therapeutic drugs have been or will be available. Third, many people in the United States and Europe cannot continue to tolerate the blockade. As you said, a lot of people in New York City have ignored the epidemic prevention regulations. Next year, peoples rebellious mood will become more and more serious, even ignoring the epidemic prevention regulations.

First finance: energy stocks, for example, surged 17% in the week after Pfizers vaccine announcement. Do you think investors are too optimistic about the vaccine news?

Mark mobies: the vaccine news changed investor sentiment. As a result, investors see the possibility of ending the blockade and the problems arising from it. That doesnt mean everyone needs to be vaccinated, and I dont think its necessary. To be sure, the news of the vaccines coming out is a big boost from the perspective of investment psychology.

First finance and Economics: once the vaccine is available, will you consider vaccination?

Mark mobies: Im not sure. Im a little worried about the side effects of the vaccine and I think Ill try to avoid it as much as possible.

First finance and Economics: in your opinion, where are the current investment opportunities?

Mark mobies: at present, our asset allocation is mainly concentrated in India, China and South Korea. Given the continued depreciation of the US dollar against the currencies of these countries, the return on assets in emerging markets, especially in Asia, will be higher than that in the United States.

First finance and Economics: which industries are you most optimistic about in emerging markets?

First finance and Economics: you have said in many media interviews that you are optimistic about Alibaba and Tencent. Besides, which stocks or Chinese companies do you like?

First finance and Economics: since US President trump took office, trade friction has intensified not only between China and the United States, but also around the world. What is the impact of this on your investment behavior? Or does it have an impact?

Mark mobies: to be honest, it doesnt matter. In fact, during the Sino US trade friction, Chinas trade surplus is still expanding rather than shrinking. In my opinion, the world is closely linked and inseparable, and international trade will continue to increase, which will not change. Moreover, at present, President-elect Bidens policy will be more inclined to global cooperation, peace and friendly relations, and will not hinder the development of Global trade.

First finance and Economics: does this mean that individual stocks sensitive to trade policies have become more worthy of investment?

Mark mobies: Yes. Many countries, including China, welcome investment from US multinationals. Accordingly, these enterprises also hope to promote the development of relations with China, and they have a great influence in Washington.

First finance and Economics: you mentioned that Internet infrastructure is worth investment. What do you think of the U.S. science and technology industry policy under Biden?

In my opinion, trade frictions have brought an interesting and beneficial change in the field of science and technology - China sees the need to develop its own software and hardware systems, and will also provide more choices for consumers around the world. For example, apple and Microsoft have monopolized the global PC operating system for many years. As far as I know, China is developing its own operating system. Thats good news for consumers like me who are feeling the collapse of Microsofts and Apples monopolies.

First finance and Economics: what is your most wise investment decision during the epidemic?

Mark mobies: investing in the semiconductor industry.

First finance and Economics: what is the last thing to do?

Mark mobies: the stupidest, or wrong, investment is in natural resources.

On the one hand, demand for commodities shrank sharply during the outbreak. On the other hand, there is a growing consensus around the world that enterprises should undertake sustainable development goals. ESG, namely environmental, social and corporate governance. Many mining enterprises do not do well in environmental protection. Therefore, the above investment did not meet the expectations.

First finance and Economics: how do you think emerging market economies will get out of this epidemic? What will be left behind?