Facing the 'undeniable risks posed by trade wars' to Asian equities

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Nitin Bajaj
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Nitin Bajaj

With the recent re-escalation of US-China trade tensions, Asian equities took another tumble and weighed on investor sentiment. Nevertheless, despite the undeniable risks posed by trade wars, many changes that investors have been discussing, such as relocation of supply chains, are already occurring.

Also, it is an undeniable fact that we are very late in this economic cycle with the recovery already having lasted almost a decade.  Andrew Neil: Cold war will be the new normal of the 2020s Against this backdrop it has not felt like a bull market in Asia, especially in the small cap space with the MSCI Asia Pacific ex Japan Small Cap index below where it was five years ago. In fact, there are many well-run businesses with strong market positions at single digit price-to-earnings ratios. Such opportunities are generally found more in a bear market than a bull market.  Other than f...

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