Chinese Markets Offer Some Real Valuation: Oreana’s Poole

The video discusses the economic outlook for Asia, particularly China, highlighting potential growth despite challenges like the Delta variant and regulatory uncertainties. It examines the undervaluation of Chinese markets and potential catalysts for growth, such as policy shifts. The discussion extends to global bond yields, emphasizing the need for Fed tapering to reflect economic recovery. The video concludes with an optimistic view on equity markets, suggesting that rising bond yields may not hinder market rallies if supported by strong earnings.

What are the main factors expected to drive economic recovery in Asia, particularly China, in 2022?

• Reduction in property prices

• Decrease in regulatory measures

• Vaccine rollouts and global economic recovery

• Increased tourism and travel

What is the current sentiment regarding the valuation of Chinese equities?

• They are at their peak value

• They are overvalued by 10-15%

• They are fairly valued

• They are undervalued by 10-15%

What policy shift is considered a potential catalyst for economic growth in China?

• Reducing foreign investments

• Providing liquidity to small and medium enterprises

• Maintaining the zero COVID policy

• Increasing export tariffs

What is the expected impact of tapering by the Fed on bond yields?

• Bond yields will become negative

• Bond yields will decrease

• Bond yields will remain stable

• Bond yields will drift higher

How might rising bond yields affect equity markets according to the discussion?

• They will reflect strong earnings and fundamentals

• They will cause a market crash

• They will have no impact on equity markets

• They will lead to a decrease in market activity

What is the anticipated level for the US 10-year treasury yield by the end of 2022?

• 2.0%

• 1.5%

• 3.5% to 4.0%

• 2.5% to 3.0%

What is the significance of higher bond yields in the context of economic growth?

• They lead to increased inflation

• They result in lower investor confidence

• They suggest strong economic fundamentals

• They indicate a weak economy