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Hi John, No. Have not added FSEAX since August. Will add if things get bad. Am still up on this fund. Hard to believe, really. Fido said they think '22 they might loosen interest rates, which would help. Just watching now... God bless the Pudd
p.s., Hank, love your post. Glad I don't have to write in that language....lol!
Today’s M* has an article devoted to contrarian plays, with China one of them. There’s a list of stocks and a couple of Matthews funds for the adventuresome.
Opened partial positions in TCEHY and BABA a few weeks ago. Think the goal is to reshape the giants rather than kill them. A couple of articles from this morning's reading:
@dafor Quartz looks interesting. What do you think of it? Cost?
I tip toed into MCSMX Mathews small companies China fund, figuring it was a safer way to get Chinese exposure than the large caps ( BABA etc) that are getting all of the pressure.
So far it is down 2%
One interesting ETF is XSOE Wisdom tree "ex-state owned industries" that focuses on companies not contaminated by state control, figuring they will preform better. While it has a fair amount of the Chinese targets ( 30%) most positions are in Taiwan, India Russia etc.
5% each BABA and Tencent
The Morningstar article, unfortunately like almost everything else they publish now, is so generic to be worthless. Listing almost 50 "small cap funds" is not research, it is advertisement. I am surprised there are investment professionals are willing to put their names on this junk.
It is hard to believe they can sink any lower and provide any less useful information for individual investors, especially after their "quantitative take " on Fund Analysis, but I guess you should never underestimate low
One interesting ETF is XSOE Wisdom tree "ex-state owned industries" that focuses on companies not contaminated by state control, figuring they will preform better.
Let's say you have two CEOs in China. One runs a company that is state controlled and has a long-standing relationship with the government, which understands exactly how the company operates. Now let's say the other is the CEO of an upstart extremely popular tech company that has largely been ignored by the government for several years. The latter tech CEO has become extremely rich, powerful and influential in China's politics. Which company do you think the Chinese government will regulate more going forward so that its operations radically change?
@dafor Quartz looks interesting. What do you think of it? Cost?
It costs me $50 per year (~$1/wk.) As I recall the current headline rate is $100 but they have frequent discount offers. Signing up for the Daily Read ( at qz.com ) provides a sense for what they offer. I typically read one or two articles per day and sometimes follow their deep dives into particular topics.....cost seems fair to me.
IF I was going to invest in China anytime in the near future I would be using EMQQ -Emerging Markets Internet & Ecommerce ETF. It consists mostly of emerging Asia small-caps but has a 50+% exposure to China. It's #2 holding is Tencent @8% and #3 is BABA at 7%. It might not be right for everyone.
I've owned MCSMX for about 2 years and this is probably a good time to buy. I'm considering adding if it falls a but further. I'm a big believer in EM overall and this is another part of that market that is really not covered by many analysts and there few investment options as well. For those reasons and the fact I like the Matthews Asia products make it a great speculation vehicle!
Yes I think it it is a good time to invest in China funds - TCELX is a newer fund but a good option. The fund mainly invests in companies in the bottom 50% of China's combined market cap (of which 98%+ are listed companies), rather than in the top 50 index heavyweights. YTD it is still up 7.64%. Mathews funds - China, China Dividend, and China Small Cap are also all good options.
Cathie Wood is fleeing. It it’s too hot for her I wouldn’t touch it.
I pay "some" attention to what Cathie Woods thinks. But, she is just one perspective among many.
BlackRock Inc. and UBS Group AG have turned positive on China’s beaten-down equities, citing investors’ growing comfort with Beijing’s crackdown and an improving earnings outlook.
Not quite yet. All these years and I'm still a fan of the House of Matthews. I've owned MPACX and MATFX and MCHFX for quite a while but scaled back when things got weird under Trump. Still don't know WTF they are up to but trust Matthews. Of the three, I prefer MATFX.
Are you concerned about the Matthews Asia personnel turnover in 2020? The following portfolio managers left the firm last year: Tiffany Hsiao, YuanYuan Ji, Beini Zhou, and Lydia So. Yu-Ming Wang, president and global CIO, resigned from Matthews Asia on 09/30/2020. Mr. Wang joined the firm only seven months earlier.
I am holding my position in MIOPX which is Kristin Heugh's fund. I note that he has been reducing his China holdings over the past few months. This is a large foreign growth fund. If I were to add to a foreign growth fund it would likely be MFAPX which is a lower risk option. MATFX is also a strong option
The following excerpts are from a current column by Paul Krugman, in The New York Times: "Is China in Big Trouble?"
(That link will only work for NYT subscribers.)
China’s economic growth has been gradually slowing. Here’s a five-year moving average of the country’s growth rate:
Basically, China has masked underlying imbalances by creating an immense housing bubble. And it’s hard to see how this ends well.
Now that’s a housing bubble. Kenneth Rogoff and Yuanchen Yang
Rogoff and Yang also show both that housing prices in China are extremely high relative to incomes and that the real estate sector has become an incredibly large share of China’s economy.
None of this looks sustainable, which is why many observers worry that the debt problems of the giant property developer Evergrande are just the leading edge of a broader economic crisis.
China, which maintains controls on the flow of capital into and out of the country, isn’t deeply integrated with world financial markets. So the fall of Evergrande isn’t likely to provoke a global financial crisis in the same way that the fall of Lehman Brothers did in 2008. A Chinese slowdown would have some economic spillover via reduced Chinese demand, especially for raw materials. But in purely economic terms, the global economic risks from China’s problems don’t look all that large.
Somewhat related to the Paul Krugman article....China appears to be managing a necessary slow down in it's long term growth rate by attempting to transition towards a more balanced sharing of a less rapidly growing economic pie. Here is an update on how China is portraying it's current situation:
Comments
危险的；有风险的
https://www.afr.com/markets/equity-markets/how-jack-ma-treatment-prompted-cathie-wood-to-quit-china-20211020-p591ia
No. Have not added FSEAX since August. Will add if things get bad. Am still up on this fund. Hard to believe, really. Fido said they think '22 they might loosen interest rates, which would help. Just watching now...
God bless
the Pudd
p.s.,
Hank, love your post. Glad I don't have to write in that language....lol!
https://www.morningstar.com/articles/1062165/3-investing-ideas-for-contrarians
Alibaba expands cloud business
Xi Jinping’s vision for China
I tip toed into MCSMX Mathews small companies China fund, figuring it was a safer way to get Chinese exposure than the large caps ( BABA etc) that are getting all of the pressure.
So far it is down 2%
One interesting ETF is XSOE Wisdom tree "ex-state owned industries" that focuses on companies not contaminated by state control, figuring they will preform better. While it has a fair amount of the Chinese targets ( 30%) most positions are in Taiwan, India Russia etc.
5% each BABA and Tencent
The Morningstar article, unfortunately like almost everything else they publish now, is so generic to be worthless. Listing almost 50 "small cap funds" is not research, it is advertisement. I am surprised there are investment professionals are willing to put their names on this junk.
It is hard to believe they can sink any lower and provide any less useful information for individual investors, especially after their "quantitative take " on Fund Analysis, but I guess you should never underestimate low
Not quite yet. All these years and I'm still a fan of the House of Matthews. I've owned MPACX and MATFX and MCHFX for quite a while but scaled back when things got weird under Trump. Still don't know WTF they are up to but trust Matthews. Of the three, I prefer MATFX.
and so it goes,
and yeppers, keep wearing the damn mask,
rono
The following portfolio managers left the firm last year:
Tiffany Hsiao, YuanYuan Ji, Beini Zhou, and Lydia So.
Yu-Ming Wang, president and global CIO, resigned from Matthews Asia on 09/30/2020.
Mr. Wang joined the firm only seven months earlier.
FWIW: TCELX gained 59.0% in 2020.
@Observant1 Not really. I've been investing with Matthews for almost 25 years. Managers come and go. feh.
good luck,
rono
(That link will only work for NYT subscribers.)
Now that’s a housing bubble. Kenneth Rogoff and Yuanchen Yang
China Seeks to Allay Growth Slowdown Fears in Xinhua Report