Michele 'Mish' Schneider, Chief Strategist at MarketGauge joined Benzinga's Premarket Prep to give her take on what she thinks will happen to China stocks in the event of a Trump win and a Harris win in next week's election.
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00:00What are your thoughts here on the China trade going into the election?
00:03Well, first of all, I think, and I've read some stories that the percentage of the GDP for China
00:10based on exports to the United States is not as large as one would think. And yes, there's a lot
00:17of tariff talk, but you have to realize that China knows about this and has been preparing
00:24for this through a couple of ways. One, obviously, is through the tremendous amount of stimulus
00:29that they started out doing, they've pulled back. And I've heard, again, in Singapore,
00:34from some people that they've pulled back because they're waiting for after the election
00:38to bring out the big guns of stimulus. So China has and can afford to add a lot of liquidity
00:45to their system, number one. Number two is they're already in alliance with Russia
00:51and a few other countries through the BRICS. And I know they have to be thinking to themselves,
00:56well, gee, if we're going to be excluded from working with the United States,
01:02then what are we going to do to either A, make ourselves get back to at least closer to a 5%
01:10of the global GDP, which is what China used to be centuries ago. Now it's down in the low fours
01:16without the United States. So what does that mean? Sell dollars, sell treasuries,
01:21that's that whole BRICS thing that's going on. I'm not too worried about China. In fact,
01:27I would be more worried about emerging markets as an investment, if there's a Trump win,
01:33that I would about China. And I actually think that China might be a really good investment,
01:37regardless of who wins.