Below are some of the most interesting articles, quotes and charts I came across this week. Click here to subscribe to our free weekly newsletter and get this post delivered to your inbox each Saturday morning.
While investors relentlessly chase Big Tech stocks, driven by the unquestioned belief they can only go higher…
— David Marlin (@Marlin_Capital) August 31, 2023
…sentiment towards China has never been more bearish.
In the past 3 weeks, more than 400,000 news articles were published that mentioned China.
More than 33,000 of them were explicitly negative. That's the highest ratio in at least a decade.
The only other time that came close was 8 years ago almost to the day. pic.twitter.com/5T2AIJnck5
— Jason Goepfert (@jasongoepfert) August 28, 2023
In light of these facts, it may be wise to remember how markets and sentiment typically work…
Bull markets begin with the feeling that the market can only go lower.
Bear markets begin with the feeling that the market can only go higher.
— Peter Atwater (@Peter_Atwater) August 30, 2023
…especially because things may not be nearly as bad in China as the media coverage currently makes it out to be.
— Jesse Felder (@jessefelder) August 28, 2023
And if the price you pay determines your rate of return investors in Chinese shares may do far better than buyers of the Magnificent 7 today.
'Amazon trades for 143x trailing earnings and 42.7x forward earnings. Alibaba can be bought for 16x trailing and 12x forward earnings. And yet, revenue growth at the two companies has been the same in the past two years.' https://t.co/U5GUQx0pa0 by @VincentDeluard pic.twitter.com/Ri5Y6GBoND
— Jesse Felder (@jessefelder) August 2, 2023
Thanks for reading and have a great holiday weekend!