China New Higher Education Group Favored, Daiwa's Kitney Says

The video discusses the VIX and market volatility, highlighting that investor sentiment is not as negative as perceived. It explores the risk appetite in the market, with growth outperforming value, indicating a risk-on tendency. The US-China trade conflict is analyzed, suggesting it is more of a negotiation with limited impact on growth and commodities. The video also examines small caps, noting their potential in the current market environment, especially in China, where regulatory tailwinds support higher education investments.

What does the VIX indicate about the current market sentiment?

• High risk premium in equity space

• Low risk appetite among investors

• Increased volatility compared to February levels

• Sentiment is not as bad as perceived

How is the US-China trade conflict expected to impact the commodity market?

• Significant decline in commodity prices

• Limited impact due to supply-side discipline

• Increase in demand for base metals

• Major disruptions in the energy sector

What is the expected impact of moderate tariffs in the US-China trade conflict?

• Severe impact on global growth

• Minimal effect on the trade cycle

• Major disruptions in supply chains

• Increase in commodity prices

What is the primary factor driving returns in small-cap stocks over the past two years?

• Growth at a reasonable price

• Growth at any price

• Deep value investing

• Value investing

What is the focus of the investment opportunity in China mentioned in the transcript?

• Energy sector

• Higher education and vocational training

• Technology startups

• Real estate development