If you were wondering whether someone could go Wilbur Ross one better and just start outright rooting for Chinese people to die, wonder no more.
“We should take our supplies and go back home. Let the chinese virus rampage through the ranks of the GT and the rest of the communist party,” the founder and chief investment officer of Dallas-based Hayman Capital Management wrote.
In fairness to Kyle Bass, he was obviously speaking out of anger: He was really, really hoping that President Trump’s trade deal with China would fall apart, not because he’s a particular fan of the president, but because he’s convinced that any deal with the Chinese is a lifeline keeping their economy afloat, and also one that they will inevitably flout. Plus, you could argue that the editor of the Chinese Communist Party’s Global Times started it by complaining about the U.S. government’s “belated” aid for the coronavirus outbreak in western China that has killed more than 800 people and countless vacation plans.
Plus, Bass did delete the tweet and clarified that he doesn’t actually want the “rank and file” of the Global Times to get sick and die. He did, however, draw the line at actually apologizing for his (at best) arguably insensitive wish.
In an emailed statement to Bloomberg News addressing his spat with Hu, he said he deleted the tweet because he “felt that it was too harsh for the rank and file” of the Global Times, but that he will “never apologize to a self-righteous, attempted manipulator of public opinion,” referring to Hu.
Anyway, let’s say—although it certainly doesn’t look promising—that Chinese President Xi Jinping is overreacting and Bass’ epidemic dreams don’t come true, and you’re wondering what the best way to make money off the near-miss is? Well, Goldman, which for what it’s worth doesn’t think world history is about to turn on the hinge of a global coronavirus pandemic, but which cancelled its annual partners’ meeting just in case—has some ideas.
“Investors who believe the economic consequences of the coronavirus will be limited should increase exposure to cyclicals and value stocks,” Goldman Sachs analysts, led by David Kostin, said in a note.
The bank’s sector-neutral dividend growth basket of 50 stocks has “declined sharply” alongside cyclicals and trades with depressed valuations.
“If fears of global pandemic are allayed, the basket should outperform,” they added.
Bass Says Virus Should Spread to China Leadership as Spat Widens [Bloomberg]
Goldman Sachs says impact of coronavirus will be ‘limited,’ and these are the stocks to buy if it’s right [MarketWatch]
This article is sourced from : Source link