March 18, 2022, 12:47 pm EDT
Rebound From Technology and China Stocks
(Featured Picture: CCTV Headquarters, China)
Today is the 4th day of the rebound wave that carried the beaten-down technology and China stocks to bounce up significantly from the recent bottom.
- Technology: AMZN, AAPL, NVDA, TSLA, FB
- China Stocks: BABA, JD, PDD, FUTU, IQ, BILI, BIDU
However, they are far below their 52-week highs so they are still relatively weak and vulnerable.
Now, the Russia-Ukraine war gets US-China attention for a web meeting today between Biden and Xi. Although we do not know what will be the outcome of their discussion, we are sure that the war is getting closer to the world war level. We estimate that the situation could get worse between the relationship of the US and China in the future.
China’s Communist Party is similar to Russia’s political system in that one man decides the fate of billions of people, Dictator cares only about his own power rather than the well-being of others. Thus, we think China will keep fooling US and western politicians until military confrontation. At the same time, weak leaders like Biden and his administration would accept or compromise on the table. Thus, there will be a process of meetings and discussions till the tolerance level is exhausted.
Thus, we keep our investment strategy to focus on inflation-friendly and defense-nature stocks including basic material, precious metal, agriculture, defense, healthcare, consumer staples (food, supermarket), and fixed income (REIT, high dividend).