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Why Chinese stocks should outperform the US market

Chinese internet stocks returned 65% over the past year, compared with 45% for the Nasdaq 100. As we observed last week, monetary factors drove the returns on American tech stocks. Negative real yields on Treasury securities pushed investors into the most predictable equity cash flows.

The big American tech companies (Apple, Microsoft, Amazon, Google, Netflix and so forth) have monopoly positions in their markets; if they paid dividends they would be the new utilities.

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