#1 US and China lead the debt race to the top
I guess when you are ‘boosting’ your economy at all cost (cough cough senseless monetary stimulus and irresponsible fiscal packages), printing and loading up debt at near 0 rates will eventually lead to this situation.
To handle the mounting debt and interest payments, you have to broaden and increase your existing revenue streams. For a start, you can ask your allies for help!!!
#2 What else is China not buying?
From AMC to GE Appliance Business, China is scooping up everything within their sight provided that the local government/regulatory entity does not step in to stop the takeover. The next generation will be talking about “Owned by China” rather than “Made in China“.
#3 Will the US and China reconcile their differences for the sake of the economies?
A couple of weeks ago, the markets seem to be pretty rosy on the prospect of a trade deal between the two countries.
#4 Hong Kong continues to be in dire straits
Coupled with the pro-China rallies in Hong Kong, this is not going to end well.
#5 Smart-beta ETFs are no different from actively managed mutual funds
Besides the obvious, i.e. the fund structure, you can wrap the active strategies into any wrapper you want, it is still active strategies at its core. And if there is anything to say about active strategies’ performance over the long run is that it is inconsistent across the board.
Have a good week ahead.
- Know your ETFs! Your due diligence checklist
- ‘Heartbeat Trades’ & ETFs: The elusive world of tax optimisation
- Direct indexing: The next chapter for ETFs?
- The creation and redemption mechanism of ETFs!
Categories: Weekly Highlights