Loading ...from apocalyptic end-of-the-world bearish to foaming at the mouth O-so-bullish is a marvel to behold-but “they” have managed to pull it off since the early 1990s-stocks are the place to be–If I am right and stocks have bottomed, then there will be little downside for PMs–and, of course negligible upside-gold only swoons when it should soar-that is during times when confidence in the financial system is shaken.
BLOOMBERG JULY 10th=CSI 300 Index will rally 27 percent from Tuesday’s close over the next 12 months
Fidelity Investments, which oversees the largest China funds outside of the mainland, is joining Goldman Sachs Group Inc. in saying that Chinese stocks are a buy following the worst selloff in two decades.
“As far as the fundamentals are concerned, we are actually quite confident,” Robert Bao, a Hong Kong-based money manager at Fidelity, which oversees more than $2 trillion globally, said in a telephone interview. “We are fully invested.”
Goldman Sachs strategist Kinger Lau predicts that the large-cap CSI 300 Index will rally 27 percent from Tuesday’s close over the next 12 months as government support measures boost investor confidence and monetary easing spurs economic growth. Leveraged positions aren’t big enough to trigger a market collapse, Lau said.
Fidelity is echoing the bullish call from Goldman Sachs, saying the four-week rout that wiped out almost $4 trillion in market valuation has limited impact on earnings and economic growth. Government efforts to stabilize the market will keep the rout from spilling over to the broader financial system, Bao said.