- 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 , ..).
- US large & Mid cap stocks are trading at 18 x forward earnings versus 12 x for MSCI China .
- Global investors are Underweight Chinese stocks .
- 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 :