Pull Back of Stock Markets At Last!!!!

We have been warning of this pull back of stock markets. Please do not read financial news to guide you. They will write stuff like “stocks plunge due to failure of trade talks”. It doesn’t matter. The rally from 24 Dec 18 to now is nearly 25% and it needs a pause. Anything can be a trigger: China trade talks collapse, black swan, earthquake. A pull back has to happen after such a long rally. Financial journalists, TV just like to find a reason for the rally or the crash.

We have been advising clients to dollar cost average into equity funds like UBS China A Opportunity and First State Dividend Advantage. We never advised to do a lump sum. The rally for MSCI World since Christmas Eve was 22.9% and a retracement of half of this rally should be seen as a great reset of the clock to allow you to buy stocks cheaper. The retracement can be 11.5% in other words.

We have been focusing on uncorrelated plays like H2O Multibonds, gold and silver. We will also be bringing in Feng He, a China long-short hedge fund that averaged 15% per year and never had a negative year. Maximum draw down at any period is only 6.5%. Stay tuned for exciting products that will suit you!


https://www.cnbc.com/2019/05/06/china-may-cancel-trade-talks-after-trump-tariffs-threat-sources-say.html


https://www.bloomberg.com/news/articles/2019-05-05/yuan-sinks-with-u-s-index-futures-on-tariff-risk-markets-wrap?srnd=premium-asia

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