Chinese stocks have been disappointing for investors, with the MSCI China index delivering a gross total return of 3.9% per year in sterling terms over the past decade. The market appears cheap, trading at ten times forecast earnings, but faces risks such as demographics and geopolitical tensions. Despite recent government efforts to boost growth, investors remain cautious, with three trusts in the China specialist sector offering distinct strategies for navigating the challenging market conditions.
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Businesses Are Betting on a Tax Cut Extension
The second Trump presidency has started with mass firings, tariff threats, and budget negotiations, causing uncertainty among investors despite initial market confidence. Extension of tax cuts is expected, but the cost remains a concern, leading to discussions on potential spending cuts. The bond market remains calm amidst trade tensions, as Treasury Secretary Scott Bessent's policies and cost-cutting efforts by Elon Musk's DOGE initiative aim to shape the economic outlook and deficit reduction strategies. Full Article
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