Long China/short copper Goldman idea #4 for 2014


Very little "China upside" has been priced in, says Goldman analyst Noah Weisberger, noting Asian-focused funds are "significantly underweight" China. His team is forecasting a big 19% gain in Chinese equities traded in Hong Kong next year.

Goldman is pairing its long-China call with a short on copper (JJC) due to "abundant supply and a lack of accelerating demand."

The long/short idea is #4 in Goldman's list of top trade ideas for 2014. Previous ideas are here.

Chinese ETFs: FXI, PGJ, GXC, FXP, HAO, CYB, YINN, CNY, TAO, CHIQ, CHIX, MCHI, YANG, PEK, CQQQ, XPP, QQQC, DSUM, YAO, CHXX, ASHR, CHII, CHXF, FXCH, ECNS, CHIE, YXI, CHIM, KWEB, KFYP, TCHI, FCA, CHLC, CHNA

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Comments (4)
  • The Sociology of Finance
    , contributor
    Comments (955) | Send Message
     
    I'm with Chanos on this one, China's debt growth won't end well.
    3 Dec 2013, 09:33 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (11172) | Send Message
     
    Free, public advice from Goldman makes me wonder what fee based, private actions Goldman is actually taking...
    3 Dec 2013, 09:39 AM Reply Like
  • idkmybffjill
    , contributor
    Comments (1911) | Send Message
     
    Goldman 'publicly' long on China? That means they are shorting it and need more people to go long so they can borrow your shares to short!
    3 Dec 2013, 09:47 AM Reply Like
  • slash32is4
    , contributor
    Comments (260) | Send Message
     
    or maybe they think that now u think they are short so really they are long and want you to go short so they benefit from a big squeeze...
    3 Dec 2013, 10:49 AM Reply Like
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