EDITOR NOTE: The Chinese government is cracking down on independent companies, which has tanked the Asia-Pacific stock market. While there are some good investments on that side of the world, the larger trend is what is interesting. Bank of America Securities equity strategist Ajay Singh Kapur noted that “The Asia-Pacific stock market crashes once every three years, versus once every ten in the U.S.” American stocks haven’t crashed since 2008, so the disaster is due. The stock market in the East is going through hard times now but will be poised to rebound soon. This is interesting timing when you consider that the IMF is revaluing its global SDR basket on September 30. This move could devalue the U.S. dollar immensely and crush the stock market leaving China and Chinese stocks to profit from the Western crash.
Bank of America analysts have picked out some Chinese stocks they expect have good business models, and aren’t dependent on economic trends — which can help them stand out in a volatile market.
The Asia-Pacific stock market crashes once every three years, versus once every ten in the U.S., equity strategist Ajay Singh Kapur and a team at Bank of America Securities said in an Aug. 16 note.
That makes it extra hard to find stocks worth holding for the long term.
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