00:00 Julie
And so Jay, do you think that in US investors should already be owning and buying um Chinese tech stocks in particular?
00:06 Jay
Oh, yeah. Yeah, we’ve talked about it before, Julie. Uh, China Tech has been dominant uh, performance-wise versus the US for several years. This is one of uh the best-kept secrets on Wall Street. KWEB, the China uh Tech ETF is up close to 40% year to date versus the Q’s up less than 20. Uh so, uh and you know, they they now dominate uh the China tech space, which is much bigger than the US tech space, growing much faster than the US and trading at a third to a half uh uh discount in terms of valuation. So, yes, uh we have been and are and continue to be overweight Chinese equities within our global multi-asset model. Uh, we expect to continue to be that way and as I said, I think the opportunity, the potential is really twofold. First, that there’s a rapprochement and Trump signals that it’s okay to buy Chinese equities. Second, and perhaps more importantly, is what China is doing to fight deflation in its own country, in its own economy. And we think they will have success in that fight. That’s one of the reasons why we’re bullish global growth for next year. And in so doing, uh better uh inflation means higher corporate earnings, which means greater multiples, higher stock prices and uh etc, etc.