The interaction of macro and markets. The October data was rightfully categorised as “awful”.
The rescue packages to property are reflective of this, as they are of the COVID-0 impact. But the support drives the forward looking market, which has rallied hard this past month.
State champions (e.g. across tech/services) also enjoying support (read as “less crackdown-interference-usurping-profit-for-state-cause”) driving a beaten down market further still. But at least 2/3rds of this approach can’t work, longer run.
The iron laws of economics are not so brittle, and you can’t keep up a market that “needs”, (and even wants) to collapse, e.g. property due to over-investment, and you can’t lighten your approach to a virus when you haven’t vaccinated. There is no “trade-off” x vaccines.
That leaves tech. No reason that can’t have a run if they keep more profits to/for themselves, as opposed to being captured by the state or staff.
No specific call to action here. We view EM as a trading exposure, around a very modest SAA weight.
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