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How a Veteran Investor Plays 'Radical Uncertainty' of U.S.-China

How a Veteran Investor Plays 'Radical Uncertainty' of U.S.-China
(Jae-Young-Ju/Dreamstime)

Monday, 23 September 2019 08:17 AM

As the world gets used to a complete reset of relations between the U.S. and China, one veteran investor has advice on handling the change.

“The approach to take is diversification,” Ng Kok Song, chairman and founding partner of Avanda Investment Management Pte., said at the Milken Institute Asia Summit in Singapore. That will help protect investors amid “radical uncertainty” as to the outcome of the conflict, he said.

Ng sees the Federal Reserve’s rate cuts as “enabling Trump” in his trade conflict. The Fed just this week cut rates for a second time this year, with Chairman Jerome Powell saying that “moderate” policy moves should be enough to sustain the U.S. expansion. Powell noted specifically that “weakness in global growth and trade policy have weighed on the economy.”

Ng, who was chief investment officer of sovereign wealth fund GIC Pte. when he left the firm in 2013 after nearly 30 years, said the trade conflict is “very devastating” for economies in Asia that are plugged into the supply chain.

He wondered whether nations like Vietnam and Indonesia would even be able to absorb production if it were to shift out of China. “I don’t think we should fool ourselves that there will be a replacement for China,” he said.

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As the world gets used to a complete reset of relations between the U.S. and China, one veteran investor has advice on handling the change."The approach to take is diversification," Ng Kok Song, chairman and founding partner of Avanda Investment Management Pte., said at the...
us, china, uncertainty, investor
210
2019-17-23
Monday, 23 September 2019 08:17 AM
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