The year of the pig is traditionally the last in the Chinese astrological cycle. Its arrival in 2019 coincides with concern among some observers that the current global economic cycle is coming to an end.
That’s not our interpretation. Notwithstanding some signs of slower global growth, notably from China, we think the current cycle may have more room to run.
After years of heady growth, China now faces a mix of challenges that threaten to curb its momentum as trade tensions collide with China’s efforts to restructure its economy. Amid slowing growth, we think there could be greater dispersion in corporate earnings that will ultimately sift out the winners from the losers in all markets.
Our near-term outlook is cautious. We don’t foresee a hard landing as we think China’s state-directed system offers a measure of confi...
Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.