As Asian markets suffer their worst day in months, a fierce debate is raging among investment strategists about whether this is a buying opportunity or the start of deeper declines. The divide reflects uncertainty about how much Fed policy, China’s slowdown, and geopolitical risks are already priced in.
Bull vs Bear Arguments:
Bulls Say:
- Valuations now at attractive levels
- Much bad news already reflected
- China stimulus coming
Bears Counter:
- Earnings estimates still too high
- Currency risks mounting
- Fed may keep hiking
“We’re advising clients to be selective – look for quality names with domestic exposure,” said Credit Suisse’s Asia equity strategist, noting financials and select consumer stocks may be better positioned than tech exporters.
