
China out of favour, time to reconsider?
It is another Macro article for me today as I look to add some quality trusts to my long term investment portfolio, so in this piece I take a look at China. Over a decade ago when I first started my career China was en vogue, if you didn’t have a large weighting to China in your portfolio then you must be quite simply bonkers, after all Chinese stocks had surged around 250% in little over 15 months from summer 2006. In those years the common thinking was that the business cycle was a thing of the past and the only way was up, that was until the 2008 financial crisis. Today though many investors are still steering well clear of China, with a trio of concerns, namely credit bubbles, doubts around the integrity of Chinese financial data and the slowing of official growth rates. But are these concerns overdone?