Global Market Shifts: RBA Rate Cuts, China's Equity Surge & US Correction amid Tariffs

Our next speaker is Jessica Amir, a market strategist from MooMoo.

Jessica has been working in financial markets for over 19 years.

Today, she'll be discussing global market shifts, RBA rate cuts, China's equity surge, and US correction amidst tariffs.

Welcome to the presentation, Jessica.

Thanks so much for having me.

So I think if it's okay, before we do get underway, I think it's worthwhile just highlighting

and pointing out the quote by Benjamin Graham and that is that he said to be an investor we must believe in a better tomorrow.

So I think that really frameworks what we need to remember as investors but also with that in mind everything that we cover today is general in nature and not classified as advice and

The context of our short discussion today will be on precisely what you said, uncovering opportunities in the Aussie share market, also remembering that Hong Kong stocks, some are punching to new record all-time highs, and this looks compelling.

And thirdly, the US market is pulling back, seeing its biggest dive in over a year, and why this is a buying opportunity.

So, Angela, looking forward to uncovering and unpacking everything with you.

Fantastic.

Jessica, let's dive right in.

The RBA recently cut rates.

It seems long forgotten and the Australian election is ahead.

So what do investors need to know?

Yeah, there's lots to consider, isn't there?

I think we do need to remember that where we are right now in markets is not necessarily where we're going to be in the next 12 months.

So the Aussie share market has fallen.

It felt like a stone.

It dropped about 10% and it's starting to move on up.

And the reason for that is because we've got lots of positive tailwinds for stocks that are coming over the long term.

And firstly, as you said, one of those is the RBA rate cut.

We do know when the RBA has cut rates after that first rate cut.

In the subsequent 12 months, we've seen markets rally 12.5%.

over the next 12 months and this is generally what happens on average and has happened the last times the RBA has cut rates.

So that's something to consider and I suspect that's why investors are buying the dip into quality stocks right now.

It's not saying that we couldn't get another fall but it's taking a long-term view.

Also remembering as you said we do have the election underway.

Interesting to note that markets do tend to outperform under a coalition or a liberal government.

But whatever happens, we do know that infrastructure stocks and engineering stocks are punching up and are surging to new records.

So perhaps that's something that investors should be looking at.

Very good.

And how can investors navigate volatility?

We seem to be seeing a lot.

Yeah, absolutely.

So it is

uncertain times and that's upon us because of Trump's tariff trade wars and it's playing up scenarios that we saw back in 2018.

But in uncertain times, Angelina, we see gold tend to do well and that's precisely what we're seeing.

We're seeing some of the best returns in the Aussie share market and globally be made in gold stocks.

So gold stocks such as West African Resources, as we can see on the screen,

They're up about 60% this year, doing exceptionally well.

But if stock picking is not for you, how do you take advantage of gold's price rallying up to new record all-time highs?

Gold is up 15% this year.

It's got more breadth, more momentum, more upside in it.

So what do you look at if you don't want to be stock specific?

Well, here's an ETF example, a GDX that invests in the world's biggest gold producers, and that ETF Angelina

is up 34% this year.

So that's just one example of how investors are getting upside in their portfolios amid the tumultuous volatile times.

Jessica, you mentioned overseas markets and ETFs.

US listed Chinese tech stocks and Hong Kong ETFs are outperforming US stocks this year.

Can you shed some light on that, please?

Absolutely.

It's worth noting that we are seeing exceptional gains in Hong Kong's market.

Hong Kong's Hang Seng is actually up 20% this year.

If we have a look at the Hong Kong Hang Seng's tech index,

Angelina, that's actually up 30% this year.

But then diving beneath that, we really need to pay attention and investors need to start focusing on what we are dubbing or what we've seen dubbed China's Terrific Ten.

So in this, they're China's biggest tech names and they're outperforming the US Magnificent Seven.

So we've got stocks in there like Alibaba,

are Tencent and BYD, and their shares are hitting new highs, and in BYD's case, record all-time highs.

But stepping back, I'd like to take a big picture.

Why is this, Angelina?

Well, it's because for the first time in history, everything has come together.

The tide has shifted for China facing stocks.

So China's launched new stimulus, AI and government policies.

President Xi is pushing tech companies to

really step up and he's dropped red tape in China and of course we've seen deep seek and this is really driving pivotal change for China facing stocks and Aussies in particular those who are using Moomoo's platform can invest directly in some of these Hong Kong stocks or you can even buy fractional shares with as much as $5 just to participate in the upside.

China, terrific.

Tang is quite interesting, isn't it?

So just one more question on the China and Hong Kong.

So what are Global Investment Bank's view on that?

It's a great question because over the past several years, we've seen investment banks be quite bearish and quite skeptical on China's growth.

But now the narrative has completely shifted.

In fact, Angelina, in February, some of the viewers might recall that many investment banks, just to name a few, JP Morgan, UBS, Morgan Stanley, Goldman Sachs and Deutsche all flipped from bearish to bullish.

on China facing stocks, all expecting them to be at high levels by the year end.

Goldman Sachs upgraded the MSCI China index saying it could rally as much as 28% by the year end.

But I really think it's also worthwhile highlighting Angelina that Deutsche also is recommending that clients actually start buying and increasing their exposure to China.

saying that this could be a once in a lifetime opportunity.

And as we were talking about earlier, BYD is a great example of that.

BYD has just rolled out the world's first electric vehicle that charges in five minutes and it travels for 400 kilometres.

So that's a world first, a game changer and it just shows you why investors really need to start

paying attention and waking up and looking at returns that can be made in other markets such as Hong Kong with BYD shares surging to a new record all-time high again and again and again and more upside is probably likely given their breakthrough.

Interesting.

And Jessica, let's shift gears.

What's your perspective on the recent pullback in the US market?

Well, I've just put up a slide here that basically illustrates the point I'm going to make.

We've seen precisely as you're right.

So the market has taken a heavy fall.

So it's down 10%.

We're down 10% from our record all-time highs that we hit just one month ago.

So it's a very sharp pullback in a short space of time.

And I guess investors are remembering what happened in 2018 amid Trump's first term.

We saw a correction, a very sharp pullback.

Some indices fell 20%.

But then months later, they were back at brand new record all time highs.

And this is precisely why I'm sharing with some clients and investors and media, I believe that this is probably going to be used as a dip buying opportunity, particularly focusing on those quality stocks with high reoccurring revenues.

So take, for example,

NVIDIA.

NVIDIA, their shares are down 20%, but they are showing promise.

We have to remember that they're the world's second largest company.

They're valued at almost $3 trillion.

That's bigger than the entire Aussie share market.

And they're the only chipmaker, Angelina, that makes most of their revenue, over 50%, by the way, from America's biggest companies.

They're growing profits at 72%, and earnings are expected to grow at 55%.

Why am I saying all these numbers?

Well, we've got to remember the basics as investors, whether we're Aussies or in the US, we've got to remember that earnings drives share price growth.

And you need to focus on those companies that are growing their earnings and that are seeing earnings upgrades.

CrowdStrike, we haven't put that on the screen there, but that is a great example of a quality stock.

And CrowdStrike, even though the market has pulled back, Angelina, has pulled back 10%

have seen CrowdStrike move very sharply up off its lows.

It's up 20% and the key reason for that is quality.

So 95% of CrowdStrike's revenue is ongoing and earnings upgrades are likely to drive that higher and it's saying upgrades.

Also think about Berkshire Hathaway.

Berkshire Hathaway this morning

as at the time of recording this webinar, punched a brand new record all time high.

And it might seem expensive to buy Berkshire Hathaway, but for those who use Moomoo, you can actually participate in returns and growth just by buying fractional shares.

So you can buy $5, for example, of Berkshire Hathaway if you wanted to, even though it's one of the most expensive stocks in terms of

the dollars that you pay, but it is hitting record all time highs.

But it shows you even in volatile times, Angelina, there is lots of money to be made even in buying the dip and also looking at stocks that are making waves, breaking to high levels, punching new waves of higher momentum.

So how do you stay on top of market movements?

So I like to all morning check all the news that's come in just to see what I should be aware of.

So investors who use Moomoo can use our app.

So we have our news function and this basically pulls in all the major news outlets, Bloomberg, Wall Street Journal, all the mainstream media.

So you get to access that for free.

So I look at that every morning.

And then the other thing is I like to look at charts.

So just to confirm the direction of what I'm seeing.

So for many technical traders, they might be using trading platforms such as TradingView and they pay for this.

But at Moomoo, we actually allow people to use our charts for free.

And they're about the same charting functionality as TradingView.

You just don't have to pay $600 US to use it.

And the other thing is we spoke about earnings growth, driving share price growth, Angelina.

So Moomoo's earnings hub is a great way to easily see a mid-earning season, Australian earnings season or US.

a quick glance you can see on the right whether a company has beat earnings expectations and an earnings beat of company delivers more earnings than they said they would and we've got to remember that that drives share price growth and that is precisely another reason why CrowdStrike is continuing to rally up and punch to near record all-time high.

So you can see that on pictorial form on Munu.

Jessica, you seem to emphasise a lot on diversification and discipline.

Can you elaborate on that in the current economic backdrop?

Yeah, so I think for me, I personally look at adding gold stocks and ETFs to my portfolios, but many investors are looking at dividend stocks.

And also those safe haven more defensive plays such as Staples, A2 Milk as an example doing really well.

But I also think there's a lot to be said about being a disciplined investor.

So investing frequently and as frequent as you can.

So I personally don't invest or put my money in a savings account anymore.

I just put it into a trading account.

Moomoo's platform is just a good example of how you can set up a reoccurring investment so it just helps you become a little bit more disciplined and it enables you to easily create a portfolio and just having the sleep at night test regardless of what's going on in your personal life or work life you can invest and invest in those key things that you like in those key stocks regardless

going on in markets.

So maybe, I don't know what platform you use, but maybe just consider a reoccurring investment, invest every month, no matter what happens.

And there are certainly dynamic times in the market, so not giving advice, but any final thoughts or ideas for our viewers, Jessica?

Yeah, so I would say consider buying the dip in those quality stocks that you like.

Buy the dip also in those companies that are changing the world.

So maybe look at gold stocks as well, Breaking Higher or Hong Kong stocks such as BYD that are really changing the world.

Secondly, Angelina, consider if you get it wrong and buying the dip is mistimed.

That's OK.

I just want to give a quick example.

If you bought Nvidia shares,

as they were falling in the first trade war back in 2018.

And you thought, right, this is a buying opportunity.

Nvidia's down 24%.

How bad can it get?

And then Nvidia fell another 24%.

So you might be kicking yourself, but if you bought $10,000 of Nvidia shares halfway through that pullback, and if you took a long-term view and held for five years, you would have made $1,030.

So there's a lot to be said about buying the dip

staying strong and taking a long-term view and that is how you can get one up on Wall Street.

We've got to remember that one percent of the world have become rich from investing and that's just a way that you might like to do that.

Thirdly consider if you are looking at dip buying whether it's gold stocks or blue chip stocks that I've mentioned in videos one have a look at Moomoo.

I have to mention that we do have some of the cheapest rates in the market and we do have some exciting

offers for new joiners, and I've just put those on the screen, but of course, T's and C's apply.

Thank you, Jessica.

It's wonderful to have you.

We look forward to seeing you again next time.

Thanks so much, Angelina.

Great to see you.