Dear readers, we are about to enter Year 2021. Year 2020 has been marked by a very volatile stock markets. Going forward, it is not easy to predict what Year 2021 holds for investors.
I read that some analysts have been predicting that the stock markets will crash in year 2021. I myself do not discount the possibility of the stock markets crashing. What I believe is that as long as all investor armed themselves with a solid, long-term investment strategy, investing and investors can still stand what the markets have for investors.
Nevertheless, there is one group of stocks which investors may want to watch out for in year 2021.
This group of stocks is none other than China stocks.
Recently, the Chinese authorities have commenced an antitrust investigation into AliBaBa, this sent AliBaba stock price diving. The investigations also have a knock-on effect on some Chinese stocks which also declined. I think going forward into year 2021, it may be noteworthy to see whether there will be new developments against AliBaba and other large-cap Chinese stocks.
Also, we must also not forget on developments of the other side of the world. The US has signed a law that would delist stocks of Chinese companies listed on US stock markets if these companies do not meet the auditing and financial regulation. I believe this new regulation will still stand with a Biden administration since it has been reported that Biden is equally or more tough than Trump on China.
This brings me to the third point: US-China relations in 2021. Many analysts predict the US-China relationships may not improve that much with a Biden administration. Volatilities in the relationship between the two giants will translate into volatilities for China stocks as well.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
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