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COMMENT
Markets and leveraged Chinese real estate. Across an economy the size of China, it's just a drop in the ocean. Will it create moral hazards or underlying problems for Chinese investors? A major form of investment has been real estate, so the issue is will there be a contagion effect? The Chinese government seems to be fairly on top of it. It won't be a Lehman Brothers event, though others are classifying it that way.
Unknown
COMMENT
Market opportunities. Sometimes you get lucky, and a stock that you've held forever gets recognized by the market and gets a leg up. Also renewables, either directly or via first or second derivatives, where products and then consumers benefit. These derivatives often have the greater upside. Be wary of putting new money into sectors that have had a significant run. It may be time to trim those. You make money when you buy, not when you sell.
Unknown
COMMENT
Reopening trades will be somewhat lumpy recovery stories. Watch the level of vaccinations. We're starting to think seriously about moving towards a recovery and what will benefit. Companies that have suffered from, but not been killed by, the pandemic offer the greatest upside. Think aviation, airports, cross-border, restaurants. You want exposure to those, but it's going to be a longer term story. Not 6 months, more like a 1-2 year trade.
Unknown
DON'T BUY
Collaboration software. Topline has had phenomenal growth. Operating leverage concerns him. Losses are growing faster than revenue. If we get a correction away from tech stocks, this kind of company will really get hit. Interesting company, but risk/reward is too binary.
Technology
RISKY BUY
Interesting story at these levels. Going to be splitting legacy divisions from higher growth. Will take a couple of quarters to show whether higher growth engine will provide more upside. Attractive dividend. Worth looking at for a trade.
electrical / electronic
BUY
Best bank in India. Foreign investors like it a lot. Challenge is low interest rates, but the macro is changing. Upside from these levels. Reasonable valuation. Reasonably attractive at these levels.
banks
SELL
Short. A volume story on semiconductors. Problem is the stock's gone vertical. Has run significantly like all semis. Looking out 6-12 months, it could come back quite hard. Very strong cashflow. Well capitalized. Great company, but entry is too high. A good short.
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