Asian Emerging-Market Stock Valuations 'Reasonable,' Cheng Says

The video discusses investment strategies focusing on Asian equities, emphasizing diversification into domestically oriented stocks due to trade frictions affecting sentiment. It advises avoiding tech stocks with high reliance on US trade. Despite trade tensions, emerging markets, particularly China, show strong earnings growth and reasonable valuations. The video suggests focusing on earnings fundamentals and domestic market opportunities to counteract trade-related challenges.

What is the main reason for the narrowing performance gap between China and developed markets?

• Trade frictions affecting sentiment

• Improved technology exports

• Higher interest rates

• Increased domestic consumption

Why should investors be cautious about tech companies with high international trade exposure?

• They have high domestic competition

• They have low earnings growth

• They are less innovative

• They rely heavily on US components

What is a legitimate concern regarding Asian markets excluding Japan?

• They have excessive liquidity

• They may not retest highs for the year

• They are overvalued compared to the US

• They lack technological advancement

What is the current valuation multiple for emerging Asia?

• 13 times

• 10 times

• 20 times

• 15 times

What strategy is suggested to counter the negative forces of trade friction in China?

• Focus on technology exports

• Boost domestic economy through liquidity

• Increase international trade

• Reduce interest rates