If there is one thing we should learn from China’s equity market in the past few years, it’s to be greedy when other are fearful.
China’s equity, on the index level, dropped double-digit for 3 consecutive years from 2021 to 2023. The table below summarizes the performance of MCHI, the ETF that tracks MSCI China Index.
Some of the headwinds China had were structural. So you can’t expect a quick turn around.
But when things do turn, and when valuation is very reasonable, it’s hard to ignore.
Now the question is, with a few weeks of correction, has the US stock market become attractive enough? Are most market participants fearful?
Source: yardeni
We better ask Buffett if he still suggests buying S&P 500 at this valuation.