Chinese Investors Are Rushing into Gold. Should You?

Hey, investors, Mark Galasiewski here.

With Japanese and Indian stocks performing relatively well, the most important question for Asian-Pacific stocks this month remains China. The property market is on the rocks, the currency is falling, and now Chinese investors are paying high premiums to buy gold in a classic flight to safety at a time of crisis.

Yet, all the evidence we looked at last month supporting an impending intermediate term or larger bottom in stocks in China and Hong Kong remains in place. Info tech stocks are diverging bullishly, valuations remain near record lows, and small cap stocks remain long-term leaders.

There seems to be a disconnect between the conventional wisdom about China and what is actually happening at listed Chinese companies. What’s more, stock buybacks at Hong Kong companies are running at almost four times their average over the prior five years.

We review those and many other considerations in the October 2023 issue. I hope you enjoy it, and I’ll see you next month.

Ever heard the saying, “On-time is late. Early is on-time”?

It applies in spades in the investment world.

Right now, our October Global Market Perspective updates you on the wave picture in the world’s 50+ most-watched markets — including IndiaChina and beyond.