Bond guru Bill Gross says central banks across the globe are playing a “shell game” with financial markets. And once the game ends, he thinks markets are likely to tumble.
It seems that hedge fund guru Ray Dalio’s take on China has changed — though to what degree is debatable.
China’s slowing economy may be the biggest threat to the global economy according to Marc Farber.
Fund Manager Of The Decade David Herro says that, while they are causing short-term bumps, the decline in oil prices and reforms in China should help investors down the road.
Newsletter guru Jim Oberweis, whose China fund is in the top 1% of funds in its class over the past one, three, and five years, according to Morningstar, says investors look at China the wrong way.
Top U.K. fund manager Anthony Bolton says he’s expecting a rebound in Chinese growth next year.
Bolton tells Investment Week that he thinks China’s growth has actually been slower than the official 7.5% figure being cited this year. “The headline figure is not reliable and I think growth has come down below that this year,” he says. But he sees better growth in 2013, and says that economic improvements and the fact that China’s elections are over should help spur Chinese stocks next year.
“The bear market will change soon in the A share market,” he said. “The economic cycle is now in its favour, as is the political process.”
Sectors that Bolton was high on in 2012, including healthcare and consumer discretionary stocks, struggled. But he’s sticking with them heading into 2013, expecting that the changing conditions will lead to bounce-backs.
Templeton Emerging Markets Group’s Mark Mobius says he’s bullish on Chinese coal companies.
“These companies are not only mining but also producing power and the demand for power is insatiable in China and everywhere else in the world,” Mobius tells Bloomberg. His funds currently hold shares of coal companies Shenhua, Yanzhou Coal Mining Co., and China Coal Energy Co.
Chinese coal companies have been rebounding from their cheapest levels on record, Bloomberg reports, and Mobius thinks some may be ready to expand. “The slowdown that we’ve seen in global markets means there’s an opportunity for these companies to buy mines at low cost,” Mobius said.