With the Wuhan virus at full swing, Chinese markets are crashing and will crash more because the virus keeps spreading and flow of people is blocked.
So expect more negative return-
So why am I not shorting China? First, shorting is hard. Shortsellers who are good make money. Others will lose their shirts. I don’t want to lose my shirt.
Second, the US markets are quite good- And I expect more money to come in to the US- The money in Chinese equities have to go somewhere- They can’t all go to cash or bonds because investors demand returns-
So I predict the US markets will do well. I like high yield REITs. With constant interest rates, the dividends will remain quite stable-
Also, adding gold is not a bad idea. Commodity cycle finally starting and lot of uncertainty with the Wuhan virus-
In sum, buy US and you should be fine- God bless America-
Praying for China-
Jesus, please have mercy on China and save its people from the disease. We know that when David prayed, you stopped the outbreak in Israel. With the same heart, Lord, please heal the Chinese people and bless the Chinese churches- Amen!
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