Daily Stock Opinions and Ratings

Opinions

Larry Berman CFA, CMT, CTA BMO CHINA EQUITY INDEX ETF ZCH-T WATCH Jul 30, 2018

He has been underweight on China for the last year or so. It has underperformed dramatically over the last 6 months. It is starting to get more interesting to him now. He gets it through a US EFF. China is going to have a challenge holding a 7% growth rate. It should slow to 4-5% over the next couple of years. He thinks ZCH-T will fall another 10%.

Larry Berman CFA, CMT, CTA

Unknown

Unlock Rating

$26.710

Stock price when the opinion was issued

E.T.F.'s

It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.

Get Signals Create your Watchlist

You might be interested:

BUY ON WEAKNESS

A lot of money is unclear on China. China wants to be the biggest economy of the world, as the reserve currency and wants to lead. However, they cannot do this without opening capital markets and letting it thrive. Accumulating every notch down. An opportunity to add every few pullbacks. However, there is limited visibility on the future.

BUY ON WEAKNESS

China is the second largest economy in the world and will be first in the future. With the tilt towards equalization and communist philosophy. China has some growth challenges with bad demographics that is aging and shrinking. 1.4B people is still a huge number. Be mindful on trimming in rallies. 2-4% would be okay with up to 5% with the next few years. Focus on the China A shares, not the Hong Kong shares.

BUY

A fine way to play China in Canada. Exposure to the big-cap names. Thinks it is on sale. Wants to have this exposure. Should be no more than 5% of your portfolio. Likes it.

BUY ON WEAKNESS

It'll take time to come back to where it was in 2021. There is a lot of supply that needs to get through. Should get back most of the recent decline in the last few months.

BUY

Risks include geopolitical risk in China.
Broad exposure to China risky but carries opportunity.
Believes a good way to play a China re-opening.

TOP PICK

He bought it at the bottom. Per his normal strategy, he will sell at the top of its trading range. China was feared/disliked as an investment, which became a traded trade, and that's when he bought. Inevitably, sentiment reverses.

PAST TOP PICK

(A Top Pick Sep 05/23, Down 6%)

He's long-term on this ETF. There is defined support at $14, so if you buy at $14, you're okay. But be patient. If it breaks below that support, he will get it.

TOP PICK

Everybody hated China because of real estate problems. Chinese government tends to step in and fix problems, and that's what they've been doing. He tried to buy off the floor, resistance around $17. Lots of faith that it'll get to at least that level, and maybe more.

PAST TOP PICK

(A Top Pick May 21/24, Down 8%)

(Note the short timeframe.) He's being patient, but exercising discipline. If it doesn't hold above where he wants, he'll be out. Chinese tech sector is way cheaper than the American side. Only a 2% position for him, waiting to see what happens.

TOP PICK

International markets have done extremely well on a relative basis. The Chinese market had been quite depressed for quite some time, now finally started to break out. Very strong in last month or so. This ETF ranks highly in his scoring, looks amazing on the breakout. Capital is moving into Europe and China.

What interests him is that despite all the tariff talk, this ETF is doing incredibly well. Intriguing that Trump is issuing all these threats, yet this ETF is breaking out.

Most Recent Experts