This woman has balls!
by Peter Switzer
I know there’s a perception and a rude observation that tough women have ‘rocks’. Maggie Thatcher had them, Hillary Clinton still does and I reckon the one endearing, public characteristic of our PM Julia Gillard is her toughness. You see it in parliamentary debate, and I did love her response to Tony Abbott when he became opposition leader and threatened her with a real contest and she replied, "Bring it on. Bring it on".
However, these are well-known cases of women who have strength and therefore get credited with a male characteristic — or should I say characteristics, plural?
So, here’s another woman’s name to add to the list — meet Wendy Liu, Head of China Research at RBS Asia.
The highly regarded market analyst and her China Equity Strategy team published a note a couple of weeks ago on recommending raising exposure to Chinese stocks to the maximum in the remainder of June.
Wendy expects the MSCI-China index to rebound substantially by late July.
In Wendy and her team’s view, the moment we have been waiting for, a transition from a range-bound market to a nicely upward trending market for the MSCI-China is finally here.
Now given all of the challenges out — with the global debt crises, a slowing US economy, a Libyan war, a battling Japan and a question mark of China’s growth — this is a seriously big call. But it gets bigger, with Wendy telling us that the remainder of June is the time to raise exposure to Chinese equities to the maximum for what they estimate to be a 40 to 80 per cent upside on the MSCI-China through 2012!
For the economically inclined out there, Wendy and her team have identified three reasons for the market rise:
- A move from tight to neutral on the Chinese monetary policy.
- Greater than expected RMB appreciation compared to the greenback compared to the consensus.
- Better-than-expected growth coming out of the Chinese economy.
Given the fact that the Shanghai Composite has a solid impact of our local shares, I hope Wendy’s call is not only big but also accurate.
Whatever happens, I would be happy with half of her prediction coming true and so I have to reassert — this woman has some serious balls!
Important information:This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.
Published on: Monday, June 27, 2011
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