Dr Doom , Marc Faber : US stocks are expensive – Chinese’s are cheap

 

  1. SP500 up 13% since election based on stimulus measures to be implemented by Trump administration but investors are to bullish as Trump will faces obstacles on implementation of these measures ( High Debt to GDP ratio , Congress , ..).
  2. US large & Mid cap stocks are trading at 18 x forward earnings versus 12 x for MSCI China .
  3. Global investors are Underweight Chinese stocks .
  4. Chinese stocks should continue to perform well based on continuing economic and earnings growth.

 

  • Barron’s Asia  switch suggestions of  Chinese alternatives to some US blue chips :

 

Sell Exxon (USD 81.03) Buy Petrochina (HKD 5.76)

Sell Verizon (USD 49,16) Buy China Mobile (HKD 84.53)

Sell JP Morgan ( USD 91.21) Buy China Construction Bank (HKD 6.07)

Sell Apple ( USD 139) Buy Tencent  (HKD 209.70)

Sell Nike (USD 56.51) Buy Anta Sports ( HKD 24.15)

 

Rationale and details here below :

http://www.barrons.com/articles/go-long-china-short-us-5-smart-stock-trades-1488855787?mod=BOL_hp_highlight_4

 

 

 

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