**[investwise]** CLSA Raises China Exposure; Breakout In Shanghai Will Signal Asia Decoupling

 

CLSA A Break-Out Of The Shanghai Indices Will Signal Asia Is Well On It's Way To A Decoupling From The Western Markets...Overweight India and China GREED & fear will increase the overweight in China in the relative-return portfolio by two percentage points. The biggest reason for the move is that the CSI 300 Index is now getting close to GREED & fear's targeted low of 2,300. The CSI 300 Index closed last quarter at 2,563, having fallen by 23% in 2Q10. This implies a potential downside of only 10%. GREED & fear repeats the view that it is too late to underweight China for relative-return investors. On that point China actually outperformed relatively last quarter with the MSCI China Index declining by 6.2% in US dollar terms compared with the 9.7% decline in the MSCI AC Asia Pacific ex-Japan Index. The long-term performance of the Asia ex-Japan thematic portfolio remains for now respectable. Since its inception at the end of 3Q02, the portfolio has risen by 527% in US dollar terms, compared with a 168% rise in the MSCI AC Asia ex-Japan Index and a 26.4% rise in the S&P500. The portfolio outperformed the regional indices last quarter, rising by 0.5%, compared with a 5.7% decline in the MSCI AC Asia ex-Japan Index and a 9.7% decline in the MSCI AC Asia-Pacific ex-Japan Index. The country bets in the portfolio continue to be India and China, which currently represent 35% and 26% of the portfolio. The recommended hedge for the portfolio remains to short European financial stocks. The five percentage point investment in the Japan thematic portfolio will be removed with the money added to the existing investment in the Asia ex-Japan thematic equity portfolio.  The main reason for this change, aside from the long-term bullish view on Asian domestic demand, is the growing risk of a further appreciation of the yen which would be negative for Japanese equities. Safe Harbor Statement: Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.   Nothing in this article is, or should be construed as, investment advice.

__._,_.___

Reply to sender | Reply to group | Reply via web post | Start a new topic

Messages in this topic (1)

Recent Activity:

• New Members 8

Visit Your Group

*****************************************
http://in.groups.yahoo.com/group/investwise/

INVESTMENTS IN INDIA
We are low-risk, long-term investors. 

Stocks, mutual funds and the entire investment gamut.  Only financing/investment avenues in India will be discussed. 

For any assistance, questions or improvement ideas, contact investwise-owner@yahoogroups.co.in

****************************************************************

NEW! ==== Check our LINKS and FILES sections for a world of information. REGULARLY UPDATED.

NEW! ==== Check "Tracklist" in Links and Files sections for Investment Ideas.

****************************************************************

Switch to: Text-Only, Daily Digest • Unsubscribe • Terms of Use

.

__,_._,___