At the Arizona Public Pension board meeting, Paul Podolsky of Bridgewater (Head of China Research and Strategist) Associates told pension officials why China is still the place to be for investors.
Podolsky said:
A. “Even though they’re enormous…it’s likely soon that they’re going to be the biggest economy in the world,”
B. “This is the equivalent of Western Europe opening up,”
C. “It’s true that we’re definitely in a trade conflict with China,”
D. “The big picture, though, I’d say is even notwithstanding the trade war, it doesn’t really change from an investment perspective what I think about China’s assets.”
E. “If you look back further through time, China was one of the dominant powers,”
Randholm say:
A. Most likely in 10 years if the FX rate does not change considerably
B. Capital should flow “freely”
C. Trade Surplus and Deficits need to be manage. It is never easy
D. There are enough factors that wont change as the trade balance get adjusted in the next decade
E. There could be a mean reversion trade on China