Russ explains why Chinese equities should still be a core holding.
COVID-19 is first and foremost a health crisis, but it is fast becoming intertwined with long-standing political disputes. Most recently, the focus has shifted to China, and the potential for an imposition, or re-imposition, of tariffs. But while China continues to be more exposed to political winds than other parts of investment universe, Chinese equities are still worth holding.
I last discussed China in January. At the time I suggested that Chinese shares looked cheap, relative to both global equities and other emerging markets.