Brendan Ahern on how global investors are underweight Chinese equties

Bank of America does a global portfolio manager survey and they say to mutual fund managers, "what are your favorite trades?"  The #1 trade was [long] Mag 7 and the #2 trade was short China.  And so a lot of that short selling was in Hong Kong and ADRs.  So offshore China...  So those investors who were short China just got run over...  But more importantly, why you're seeing this reaction is that investors globally have been very underweight China.  China's economy is $18 trillion GDP, but India at $3.5 trillion actually was a bigger part of global indices...  It makes no sense, but it just shows there's this incredible underweight Chinese equities globally.  Some of that money that came out of China went into U.S. tech or India or Japan and what you're seeing is a re-rating back in...  That supertanker of underweight doesn't turn on a dime.

~ Brendan Ahern, "Don't Believe the China Boogeyman Narrative," Stansberry Investor Hour, October 7, 2024

Brendan Ahern on the false China narrative

In general, Western media is a source of disinformation.  It’s not a good source for what’s going on [in China]…  Business people and investors have been getting along just fine and the diplomats from both sides have not.  I think the media plays with what DC wants.

~ Brendan Ahern, "Don't Believe the China Boogeyman Narrative," Stansberry Investor Hour, October 7, 2024