Zweig: Think Before Buying Chinese Stocks

In a recent article for The Wall Street Journal, columnist Jason Zweig argues that although many U.S. investors appear to be increasing their exposure to China (hoping for high returns due to the country’s economic growth), “those hopes could end in heartache when expectations collide with reality.” Zweig points out: “History shows that countries with faster-growing economies often produce lower—not higher—stock-market returns.” Since Chinese stocks peaked in 2007, Zweig explains, they have lost an average… Read More

Soc Gen Says Time is Right for China Stocks and Emerging Bonds

Strategists at Societe Generale, who identify market timing signals using quantitative models, believe it’s time to reduce allocations in global equities “as dwindling expected returns indicate the end of the current bull market isn’t far off.” This according to a recent Bloomberg article. The bank further asserts that Chinese equities, euro-zone fixed income and emerging market bonds will deliver the highest returns over the next 12 months. But the team—led by the bank’s Paris-based head… Read More