I listened in on another conference call with a big money manager with an enviable track record. These guys remain very concerned about the near-term outlook and have only a net 17% long equity exposure (meaning they have hedged much of their long position). Cash, gold bullion, and bonds are their main holdings, in that order.
The real item of note in the call was their “incrementally more positive” view on China. Their argument is that China is being much more effective than other governments around the world in enacting stimulus policies. New infrastructure projects are already underway. They remain cautious, however, as while these projects may be stimulative they want to see evidence of profitability before increasing investments.
That being said, they noted that the Shanghai A-share market is up 12% so far this year, which is a welcome indicator. I’m glad to be an investor with them.