In our 2024 outlook video, Joseph Lai discusses the historical impact of the Year of the Dragon on Asian equities, recent high-level dialogues between the US and China, the multi-year transition of China’s economy, and more.

We are seeing a clear dislocation between reality and stock market sentiment. Contrary to news headlines of a lacklustre macro-economic environment and outlook, quality companies continue to execute and grow earnings, highlighting the importance of looking through the noise.

Welcome to 2024, the Year of the Dragon in the Chinese Zodiac. In this report, we outline our key expectations and themes across emerging markets in 2024 and how we are positioned.

Ox Capital follows an investment philosophy of acquiring future champion businesses at discounted valuations. Despite facing economic challenges, the Chinese economy is expected to overcome negative factors, such as reduced reliance on the property sector, geopolitical pressure, and ongoing economic reforms. Right now, we see an opportunity to invest and take advantage of these very attractive valuations.

The recent reduction in Brazil’s notably high 14% interest rate presents compelling investment opportunities, fuelled by the potential for economic growth through the recovery of essential commodities.

The Chinese government’s rapid policy easing, including a reported RMB1 trillion pledged supplemental lending, signifies a renewed commitment to quantitative easing (QE) and bolsters confidence in economic recovery, presenting attractive opportunities for investors with OxCap well-positioned to benefit.

China’s government actively deflated the property market bubble aiming to stabilise the economy. Recent data indicates signs of market stabilization.

Ox Capital’s Approach to Asian and Emerging Markets.

Discover Ox Capital’s top-down risk management framework. Learn how our quantitative model, MOAT analyses millions of data points to help us identify potential mispricing’s and navigate market trends.

Dr Joseph Lai shares his market insights in these short video interviews with Ausbiz.