Trade War Tensions

CNBC released an article saying that the Asian market could experience widespread disruptions from the trade war. However, Vietnam and Malaysia could win out on low-end manufacturing of tech. Countries that rely on exporting to China, such as Japan and South Korea may have disruptions in the short term.

Stan Wong on Asia

Are you concerned about China with its volatility, and emerging markets? He actually likes some of the Asia EM markets. He won’t buy big now, but he has some limited holdings there. China is trading at forward earnings less than 10x. Sentiment is still negative. Wait until that sentiment turns. He doesn’t see a major shift in U.S. policy towards China after the Midterms. It’s more like how long can China hold out on these tariffs. A trade war benefits no one. It’s a matter of coming to an agreement.

The recommendation is to wait until the sentiment changes, because it’s still negative. But carefully choosing some parts of the Asian emerging markets could be a good deal.