Then should we put more money into it?
Financial Markets Around World
- Thread starter 4Runner
- Start date
China should print way more money and then pump it into the economy. The stock market will go up as the economy is pumped up.
I am not sure that works for the Chinese market Long term speaking, stock market has little to do with the real economy as I've learned in very painful way, Tesla stock up 700B USD since the US election, what changd?
What about the Taiwan issue and the sanctions from the West, the Chinese stock market would tank? A war over Taiwan seems like a real possibility in the coming years.
At some point the US equity market will be so overvalued that everything else looks cheap/undervalued next to it --> a tendency towards selling expensive US equities to buy underpriced assets should occur --> hence, a market correction.
No one can tell you the timing of this correction of course
Also this all assumes no capital controls on the money held inside the US stock markets.
I think it’ll last a while longer. Trump sees the stock market as the gauge of economy, he’s probably not gonna let it fall as soon as he takes office. Musk’s businesses are especially gonna benefit IMO. FSD may be a pipe dream, but robotaxis in small, geofenced areas where traffic isn’t too aggressive like most American inner cities except for NYC is possible. They’ll perform well enough and cost way less than human driven taxis. The main hurdle is regulations, which at least at the federal level can be cleared with a friendly government. There will need to be local support as well though, and that might be a bigger issue.
His other businesses are well positioned as well. SpaceX needs introduction, it’s world-leading for the foreseeable future, though you can’t invest in it directly. His energy business should be well positioned to take advantage of the increased requirements from AI and data centers, especially if he gets a pass from a friendly government to take advantage of the Chinese supply chain. He has no domestic competitor for solar and ESS, and alternative tech like nuclear e.g. Nuscale is just not gonna be competitive cost wise.
As Taiwan is being reunified, all sanctions from the West will be irrelevant. China will then sanction the west, causing them to crumble along with their national debt.
There's this joke in China.
When was the Shanghai stock exchange at its highest?
Answer: in 1948 lmao.
More seriously, just look at market cap of Tesla versus all (yes all) Chinese car markers.
Does Tesla produce as many cars as all Chinese car markers?
Or is Tesla cars so good that they are worth like, 25 Chinese branded cars (including premium cars and brand like Li Auto, premium BYD brands etc.)?
That is why byd deserves much higher valuation. They will have no problem selling 10 million EVs per year, exceeding toyota, as the world's #1 manufacturer.