Over the past year, China has grappled with escalating challenges—from a real estate meltdown to tech crackdowns and slowing growth—leading many investors to deem the country "un-investable." However, recent policy moves from Beijing, including significant interest rate cuts and liquidity injections, may point to a major inflection point ahead.

In this episode, Rob Duncan speaks with Forstrong’s Research Analyst, Shibo Gu, on the ground in Northern China. Together, they unpack the latest stimulus measures and their potential impact on investors eyeing opportunities in the world’s second-largest economy. Is this renewed optimism justified, or should caution still prevail?

Chapters

00:00 Introduction to China's Economic Landscape
03:28 Stimulus Measures and Their Implications
08:42 Investment Opportunities in the Wake of Stimulus
12:04 Market Outlook and Investor Sentiment
18:09 On-the-Ground Insights from China

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Previous posts on visiting China.

Ask Forstrong: Postcard from China

Global Thinking: Postcard from China, Part 2

Investors have been pouring into Canadian ETFs at an unprecedented rate in 2024. While cash and US equity ETFs have dominated flows this year, recent trends suggest a shift is underway. Weaker economic data and volatility in Japan have investors worried, while international markets present compelling opportunities.

In the latest Global Thinking episode, Rob sits down with Daniel Straus, Director of ETF Research at National Bank, to discuss recent ETF trends and investment flows. Together, they explore why investors should focus on global opportunities and how to navigate the period ahead.

Show Notes:

00:00 - Exploring ETF Flows and Market Trends

05:08 - The Growth of the ETF Market

08:25 - Fixed Income Flows and the Demand for Cash

12:41 - The Appeal of International and Emerging Market ETFs

15:47 - The Unwinding of the Carry Trade in Japan

19:59 - Interest Rate Policy and Rate Movements

22:55 - Canadian Equity ETF Inflows and Home Bias

23:25 - Investing in Canada's Energy Markets

25:16 - Canadian Banks: A Demand Spot

28:06 - The Growth of Active ETFs in Canada

30:25 - Covered Call ETFs: Present Income vs. Future Upside

37:46 - Exploring Consciousness and Free Will

When asked about the prognosis for markets, American financier J. P. Morgan once famously quipped, “they will fluctuate”.

That statement is not meant to be dismissive of recent market volatility: the first half of 2024 has faced a long list of new realities from an AI fervour to contentious global elections. But, today more than ever, wealth accumulation demands a focus on fundamentals and looking beyond recent hype. Currently, there are historic opportunities to pivot into new investment themes as markets find a new footing and fresh macroeconomic trends emerge.

In this discussion, Rob Duncan, Senior Vice President, Portfolio Manager & Lead ESG Officer, sits down with Forstrong Portfolio Manager, Terry Shaunessy, to explore where investors might be succumbing to market exuberance and identifying strategies to navigate volatility while achieving their financial objectives.

Disclosures: https://forstrong.com/disclosures/

Global Thinking Podcast

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