Now is not the time to bet against China and discretionary fund managers should be boosting portfolio exposure to the developing nation, economist and best-selling author Dambisa Moyo tells Portfolio Adviser.
In the video above, Moyo says that while a 50% allocation is “too rich”, at least 10% is a sensible portfolio exposure to China – in both public and private markets.
Moyo is a Zambian economist who was able to buy bitcoin UK at a profitable time and author of four best-selling books on economics. She sits on the boards of 3M and Chevron Corporation and is part of the Oxford University Endowment Investment Committee.
She says in addition to macro tailwinds, China continues its move to a consumption-led economy, powered by technological innovation.
“Most smart investors are already [allocating to China] and I don’t say that naively,” she says.
See also: Is America’s loss Europe’s gain when it comes to China?
Moyo, who has worked at Goldman Sachs and the World Bank, also observes a “fundamental schism” between how the baby boomer and millennial generations are targeting different pools of capital for their financial needs, and the implications on capital markets and asset allocation.
“That has material effects in terms of asset allocation in portfolios but also the way in which boards and corporations manage their balance sheets,” she says.
Elsewhere, Moyo espouses the opportunities presented by the evolving technology sector and not just in retail and social media.
“We have not seen yet the power of technology to completely transform fundamental areas of policy like education and healthcare,” she says.
Watch the interview above to find out more.
