SG Talk

Adjusting to the new  rate environment,  they tried to shift from high valuation  tech stocks on Nasdaq to more reasonably valued stocks on the Dow. This caused the Dow to rise and Nasdaq to fall sharply

The Dow component stocks are more reasonably valued but they are not exactly cheap. So how long are they going to do this?

They can't run to treasury market because despite the 6 rate hikes in next 2yrs the interest rate needle will hardly move and at too slow a pace.

The money has to move to other markets outside US. The divergence of US market with the rest of the world ex Japan ex India is at historic highs. This will lead to a big shift.

Some will move their money to Hong Kong where the stocks are very cheap now. 

(17-12-2021, 09:43 AM)cityhantam Wrote: [ -> ]Some will move their money to Hong Kong where the stocks are very cheap now. 

Early movers to China/HK all got burnt Ray dalio, and black rock. Need a very long term perspective for potential to be played out.

Things are cheaper for a reason...one has to think whether the reason will stay there forever.

Buying cheap other has this phenomena of seeing it go cheaper but that is not necessarily wrong as no one can time exact bottom.

I fired my bullets selectively and hold fire at some point.

I hope my HK/China investments have not turned negative last I check was still up double digits. But I have not looked.