hisah wrote:mchambuzi wrote:hisah wrote:guru267 wrote:Many Chinese stocks trade at 100+ P/E
A lot of global equities are frothy. I'm one concerned trader and risk management is now my highest priority going forward. Easy money phase is fast running out... Which country do you think will experience the most robust growth 2014? I thought it would be China, but the debt concerns are worrying. New Zealand maybe?
Credit markets are showing signs of tightness. For now hard to tell which country will breeze through. Equities don't perform well when the credit mart behaves this way. Volatility will likely be plenty this year with minimal gains or losses for many portfolios without proper risk management. A comfy play is to hedge in undervalued counters to avoid the likely volatility. I agree with you. I am just hoping the expected slowdown in Chinese economy will not affect global markets as adversely as some investors are speculating. China as well needs to look into their real estate markets and provide alternative investments streams, otherwise when their bubble busts, it going to be really bad for emerging economies and other economies as well. Volatility is great for returns, money management is the tricky bit.
On a long enough timeline, the life expectancy of everyone drops to zero.