Good Morning,
Today in the UK its “D-Day”……
In yesterday’s British times over 1,000 CEOs and public figures came out swinging, stating that a “Brexit” would have adverse implications for the economy.
It appears that the younger demographic want to remain…
The oldies, want to exit….
If I was a betting man, I would say that the “scare campaign” by the politicians and CEOs is enough to put “uncertainty” in the minds of voters and tomorrow the Brits will stay (just) in the EU…..
But it will be close….. very close….
An interesting story developing in Bloomberg this morning…
When it comes to timing the Chinese equity market, Huang Weimin is hard to beat.
The self-taught hedge fund manager gained more than 6,200 percent by riding the boom and bust in Chinese stock-index futures last year, then returned another 60 percent in the first two months of 2016 by turning bearish before the market tumbled. As Chinese shares meandered over the past four months, he played it safe in cash.
Now, Huang says, the time is right to buy.
The Shanghai Composite Index may rally 18 percent next quarter as a delayed rule change for initial public offerings restricts the supply of shares and authorities keep the yuan stable before its official entry into a global basket of reserve currencies in October, Huang said in an interview. He expects Britain to vote against leaving the European Union on Thursday, removing the biggest international risk to asset prices. Even the unlikely event of a Brexit won’t derail the ascent of Chinese stocks, he said.
If the Brits don’t exit, we expect global asset prices to rally into 30 June….
The SPI is down 6 points this morning
Niv Dagan is an Executive Director of Melbourne based boutique funds management and corporate advisory firm, Peak Asset Management (www.peakassetmanagement.com.au). He is also a regular financial commentator on Sky Business.
