So what’s up around here, is B-Chad still keeping you animals in line? With Brexit I’m back paying attention to the market, I only trade during fear/greed spasms, the rest of the time I do nothing.
China…boring! I’m doing nothing there. Right now UK is where the action is; picked up some Royal Bank of Scotland preferred at 7.7% yield. Want to pick up some Barclays preferred if we get more chaos, the “PR-D” was trading at 8.1% the other day.
Still holding my A-shares, and picked up a bunch of H-shares when they hit crazy absurd low valuations awhile back. I’m not crazy about H-shares but if anything goes low enough it’s buy. It’s dividend season, the financials pay out annual dividends this time of year, a lot of them I got in the 6-9% yield range. Thanks China! Flat capital gains (slight gain in HK and slight loss in SH), expect things will just sit at these levels for years, and I’ll collect the dividends waiting.
Welcome back, PA. It’s a releif to know that no one dumped you inside a slab of concrete as it was being poured. When Asian markets went south and we didn’t hear from you. I half expected some client of yours had done just that.
My spanky new China A-share trade is as follows: since I’m almost done collecting the fat Summer dividends (annual payouts), I’m trying to sell ASHR calls @ $30-ish for extra income (covered calls against my massive A-share portfolio). Expiring just before possible Trump presidency threat. No sucker is taking the bait so far, but I have faith some Millennial or whoever will eventually bite HA! The opening of the Shenzhen market (rumor) might provide the required optimism?
Hard to see the CSI300 rallying 25% in the next four months, but it’s an irrational market so you never know.
^ I tried to sell some puts, a few months out, down in that 2700 range, couldn’t get a buyer though. The rumor is the government-floor is still in place and being defended.
That’s what I’ve been telling you guys forever now!
The big four actually average 0.8 P/B (from 0.7 to 0.9). If you are looking for a rational reason in a Western valuation/risk type of thinking, that’s not how that market works. The local investor base just doesn’t like banks (boring in their mind), and they don’t care about dividends (since they can make 6% in one day day-trading on CHINEXT).
“G-20 countries should intensify consultation and coordination, forge policy consensus, and guide market expectation,” Chinese Finance Minister Lou Jiwei said Saturday at a symposium kicking off the meeting. He repeated comments from President Xi Jinping that it’s “vitally” important for the group to enhance how it works together, adding that the “global economy is at a critical conjuncture” as the “impacts of the international financial crisis are still unfolding.”
U.S. Treasury Secretary Jacob J. Lew on Thursday talked down the need for crisis-level coordination. The U.S., is “a bright spot” in a world with a lot of uncertainties. [bullshit]
Hmm, it seems to me thoughts from China should not be so quickly dismissed. All countries have economic data on all other countries, except economic data on China. China has all data, since it has its own. When China says these things, one wonders if they are not signaling what only they know? Anyhow, I remain pretty bearish on the global economy; Brexit, Trump, terrorists, China slowdown, US earnings recession lasting two years…its not great.
CSI-300 now back over 4000. Another run up to 5000 coming??
I’d been sleeping thru it, really took a closer look today, I’ve been making bank! The stuff I bought during the correction: my Saic Motors stock is at a 75% gain, Great Wall Motor up 65%, Qingdao up 60%, ICBC up 60%, China State Construction up 40%, Citic up 35%. My worst pick was China Unicom, only up 20%.
