Mark Scher, CIMA Senior Investor Advisor for MASECO Private Wealth, joined today’s Finance Show on Tip TV to speak on the Chinese economy, and offered the outlook for Emerging Market Currencies.
China data: Fooling the markets?
Scher expresses concern on the Chinese market, especially what happened in the past 7 months, and says the economy should be moving more like an emerging market.
He further expresses skepticism over the Chinese GDP, quoting that the growth should be closer to 4% than 7%.
Scher comments that China remains in a problematic situation and with a dramatic fall in exports, the economy’s shift to becoming more consumption led is going to be painful.
On investment, Scher believes that despite the inaccuracy in accounting, there is still some value potential left in the Chinese market.
Broad EM view
When questioned on the view for emerging markets, Scher highlighted that the EM FX remains a great value buy. He believes the low in Mexican peso might be a multidecade low, and this along with the Malaysian and Indonesian currencies look like great buying opportunities.
Scher maintains a positive outlook on the dollar with respect to the EUR and JPY.
On further trading insights, he adds that it would be a great way to short treasuries from provided the Fed starts its rate hike program.
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