American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Why Chinese stocks could outperform US markets under Trump’s tariffs

by admin March 4, 2025
March 4, 2025
Why Chinese stocks could outperform US markets under Trump’s tariffs

Chinese stocks have been “dead money” for an investment point of view for quite some time, but Michael Gayed of “The Lead-Lag Report” believes that could change in 2025. 

The market veteran now expects Chinese equities to outperform their US counterparts over the next four years.

“If you’re going to do a spread trade, going long China and short US, dollar for dollar, could be a really interesting pair trade to consider,” he argued in a CNBC interview on Monday.

Gayed’s remarks arrive at a time when the S&P 500 has been losing on concerns of a global trade war after President Trump’s tariff announcements, while Chinese stocks continue to benefit from a “DeepSeek infused rally.”

Is the Trump administration a negative for US stocks?

Michael Gayed’s four-year view essentially means that US stocks will underperform China under the Trump administration.

However, the expected weakness doesn’t really have anything to do with who’s in power in the United States.

Instead, it’s based entirely on attractive valuations that could drive global capital to Chinese stocks in 2025.

I’d argue there’s tremendous underinvestment [in China] given the valuations are so markedly different between the US and Beijing.

It’s this discrepancy that will contribute to increased allocation to Chinese equities from here on out, he said this morning on “Squawk Box Asia”.

Why does Gayed have a contrarian view on Chinese stocks?

Gayed expects local investors to return to Chinese stocks as we continue to move farther away from the bitter memories of the COVID pandemic as well.

Concerns of political and regulatory uncertainties more recently have led to a broader narrative that Beijing is not really investable or is too speculative to say the least.

While such concerns are not entirely lost on Gayed, he held on to his contrarian view on Chinese equities as “everything is investable when the trend is up.”

Ultimately, the portfolio manager expects greed to overtake concerns around Chinese stocks and valuations to “matter more than any political ideology.”

Chinese stocks that may be worth watching in 2025

All in all, a whole bunch of factors point to the possibility of Chinese stocks outperforming the US in 2025.

The country’s government has been rolling out fiscal stimulus and reassessing its tech industry in pursuit of improving investor confidence.

Additionally, commitment to artificial intelligence that many believe will be a $1 trillion market over the next ten years, together with IT localization could contribute to Beijing doing well relative to the United States over the next four years.

Notable names like Alibaba, PDD Holdings, and JD.com have rallied in recent months and these factors combined suggest these stocks could extend their gains further as we move through the remainder of this year. 

The post Why Chinese stocks could outperform US markets under Trump’s tariffs appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
TSX Composite analysis as Canada bond yields, Loonie crash
next post
Asia markets fall as Japanese stocks lead regional declines; China announces fresh US tariffs

Related Posts

Bitcoin surges to $106K, up 50% since US...

December 16, 2024

Aldi to add 800 new U.S. grocery stores...

March 8, 2024

Asian markets open: Nikkei falls, Samsung rises 3.5%;...

July 28, 2025

Here’s why the Nifty 50 Index may surge...

June 6, 2025

Upwork stock price hits resistance as it faces...

January 5, 2025

Starbucks’ new CEO Brian Niccol is planning a...

October 24, 2024

7 lesser-known stocks poised to perform after hurricanes

October 11, 2024

Grupo Mexico reports 17% rise in Q1 net...

April 26, 2025

Rolls-Royce share price key levels to watch as...

November 25, 2024

Long ACHC: Acadia Healthcare Rebounds Sharply After Subpoena...

September 30, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • How Donald Trump’s immigration crackdown may tank the labor market

      August 4, 2025
    • Trump’s tariff threat looms over India’s Russian oil deals

      August 4, 2025
    • Trump moves nuclear submarines near Russia: what triggered the move and what’s ahead

      August 3, 2025
    • BOE rate cuts offer little relief as UK households face mounting financial strain

      August 3, 2025
    • Retail investors shift focus to Europe as US valuations stretch

      August 3, 2025

    Categories

    • Business (3,583)
    • Investing (2,703)
    • Latest News (2,031)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved