“The risk is you get them in at the top and they give that back in the subsequent months following,” Woods, chief investment officer for Asia at the Swiss private bank, said. “For those who haven’t seen the movie, it’s a painful trade.”
While China’s stimulus blitz delivered initial euphoria to the nation’s US$10 trillion ($13.41 trillion) stock market, for Lombard Odier’s Asia investment chief it’s what happened after that has him on edge.
The sweeping package unveiled two months ago has created a dilemma for advisers to the super-rich, John Woods said in an interview. The resulting stock surge after years of under performance had some chasing the rally on bets this time was different, while other have grown wary of similar head fakes.
