FXI: The First Casualty Of Trump's Return Is China
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The US-China decoupling is expected to accelerate if Donald Trump returns to power, making the Chinese economy more vulnerable than during his first term. The iShares China Large-Cap ETF (FXI) is considered a value trap, and investors are advised to avoid it.
November 06, 2024 | 7:15 pm
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The iShares China Large-Cap ETF (FXI) is considered a value trap due to the potential acceleration of US-China decoupling under a possible second term for Donald Trump. Investors are advised to avoid FXI.
The article suggests that the US-China decoupling will accelerate if Trump returns to power, making the Chinese economy more vulnerable. This situation makes FXI, which is heavily invested in Chinese stocks, a risky investment. The recommendation is to avoid FXI, indicating a negative short-term impact on its price.
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