EM Fund Stock Picks & Country Commentaries (November 1, 2023)
Some emerging market fund stock picks (from US or international fund letters) plus the unloved Hong Kong stock market, China investing for tactical vs. long-term endowment investors, etc.
In a recent podcast, it was noted how there might still be niche areas to make money in China, but western investors know that all it takes is a “little twist of the dials” by the government and things can go wrong very quickly (as in you loose a gigantic amount of money…).
In another podcast with a fund manager where China was discussed, it was noted that you need to decide if you are a tactical investor or a long-term endowment investor. Then you need to think of the probability that you will have a 100% loss e.g. a Russia invades the Ukraine type of event where you are not allowed to even own a certain type of stock anymore. The probability is not zero when it comes to China. Therefore, investing there may only be suitable for tactical investors.
On the other hand, a recent fund letter discussed the unloved Hong Kong stock market and how it’s fundamentals are not that bad. Likewise, there are some bright spots in the local Hong Kong economy which is helping some stocks in particular sectors.
Finally and as mentioned on Monday, I had to use expiring frequent flyer miles and I am visiting Japan (Tokyo-Kyoto-Tokyo) for another two weeks. But I will still be writing posts.
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For a further disclaimer and an explanation of the reasoning behind these posts: DISCLAIMER: EM Fund Stock Picks & Country Commentaries Posts.
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🗄️ Fund documents / updates; ⚠️ Disclosures or restricted access e.g. based on your location, investor status, etc.; 🎥 Video; 🎙️ Podcast; 🎬 Webinar; 📰 Newspaper/magazine article; 🗃️ Archived article; 📯 Press release; 🔬 Research analysis (including articles/blog posts from fund managers, etc.)
Trading Economics also has good country level inflation data:
🔬 Cooling (and re-heating) inflation in emerging markets (Macrobond)
Red cells indicate month-on-month acceleration; blue cells, a deceleration.
This chart from this piece is worth noting:
🔬 The case for low volatility and high dividend equities in international markets (Franklin Templeton)
The latest monthly commentary (economic and portfolio) is from the end of September.