These big banks — many of which report earnings next week — "don't have the leverage that they used to have" and are reaping benefits from their sizable wealth management businesses, Davi said, adding that at 12-13 times earnings, the group is "cheap" relative to theiShares MSCI China ETF"We've been bullish for a while," he said Monday. "I think there's a good macro story for owning it. There's a fundamental story.
If you ask Senra, "there's a place for China in a client's portfolio, and it's a theme that we believe will evolve and will continue to make a lot of sense for many, many years to come."There was a broader theme Senra found even more attractive than just China, however. "For 2020, we're also very positive on emerging markets, so, not necessarily China," Senra said. "I think that a lot of the monetary policy stimulus that we saw in 2018 is behind us. In the case of emerging markets, there's more room to move. They can continue to lower rates and they will also benefit from global trade, a more stable global trade environment, and [from] a pickup in growth. So, actually, for 2020, we are more optimistic on emerging markets.
"Commodities have been largely under-owned the last 10 years, so any pickup in inflation, commodities should do better," said the investor, who expects inflation to tick up in the decade ahead.