In the 1st half of 2023, I am heavily invested in China tech stocks such as Alibaba, Tencent & Baidu. Suffice to say, my return is terrible if compared to US tech stocks. However, I am still a believer in China tech stocks. China’s government wants to curb speculation in the real estate market, that is understandable as it is very unsustainable? However, their attempt to do so has caused the economy to slow down tremendously. They have to stimulate the economy and create “mini bubbles” in order to create the wealth effect which will improve consumer sentiment. It will be the year of the Dragon next year. Traditionally, couples will want to have kids during the Dragon year. Since China is facing a demographic problem, they will have no choice to let a bubble build up. When people feel wealthier, they will want to have kids or get married.
Let’s see if my investment strategy is correct.
