The start of year Dragon is dramatic in stock market in China, where the index crashed to 2635.09 and pulled back to above 2800 before the nation entered into Chinese New Year holiday season.
The drama has erased lots of wealth for those who invested in snowball products linked to ZZ1000 stocks; and lots of quant fund had huge revaluation on their AUM. The chairman of CSRC was replaced by a new guy, who is supposed to save investors from the crisis.
After Chinese New Year, the stock market appears to be climbed out of the crisis and edged above 3000, while the rest of the world continue to enjoy the bull run on risk assets, including US, Europe, Japan, Vietnam and etc.
US would pause rates hikes and might cut rates if inflation is under control; emerging markets could receive investments as dollar rates tops and dollar index starting to decline.
I would expect that both US and Chinese market could offer good opportunities for stock markets. As the start of this year, my portfolio is fully allocated for US stocks.
ichihedge 