Did you know that China's property market accounts for about 29% of its GDP?

Investors should be mindful of property market trends when considering investments in Chinese assets.

Today, we’ll talk about these three topics:

• China Responds To Economic Concerns With Rate Cut – Here’s Why That Isn’t Enough: First, despite China’s central bank cutting interest rates and promises of economic reforms, the actions may fall short of addressing the real challenges ❌

• Why Berkshire’s $1.5 Billion Sale Of Bank Of America Stock Could Be Just The Beginning: Next, Berkshire Hathaway’s recent sale of Bank of America shares raises questions about future divestments 🏛️

• What Kamala Harris Believes: Finally, as Democrats unify behind Vice President Kamala Harris, it's essential to understand her political stance 🤔

Stay informed and ahead of the curve with our in-depth analyses and insights. Happy trading!

China Responds To Economic Concerns With Rate Cuts – Here’s Why That Isn’t Enough ❌

Chinese policymakers have tried to appear responsive as its economy loses steam, with the central bank cutting interest rates and senior officials highlighting forthcoming economic reforms.

But it’s still not enough.

But there are few signs of a major pivot or reassessment of how China should deal with its economic challenges.

Focus on economic structural reform is a concession to growing concerns about the direction of economic policy.

There is no indication Chinese leader Xi Jinping is moving toward fixing the property market or creating safety nets.

Furthermore, the token interest rate cut is not doing much for the economy 📉

The technology sector—currently a major engine of growth—is less credit-intensive and the sectors that are more closely tied to rates, such as property, are still weighed down by an inventory glut.

Consumers and businesses also show little signs of wanting to borrow.

The long-term agenda and rate cut just aren’t enough to move the needle on sentiment.

Investors are stuck waiting for more ⏳

Why Berkshire’s $1.5 Billion Sale Of Bank Of America Stock Could Be Just The Beginning 🏛️

Was it a trim or the start of a major sale?

That is a key question after Berkshire Hathaway disclosed in a security filing last Friday that it sold $1.5bn in BoA shares.

When Berkshire starts selling big equity holdings in banks, it often continues to do so.

The risk of further sales appears to be depressing Bank of America stock.

The stock also may be lower because of the signal the sale sends; it is an indication that Berkshire CEO Warren Buffett may view Bank of America stock as fully priced now 👀

Meanwhile, renowned Wells Fargo banking analyst Mike Mayo and others reacted favorably to the bank’s recent second-quarter profit report.

Mayo lifted his 2024 profit estimate by a nickel to $3.25 a share and his 2025 estimate by a dime to $3.70.

He cited a strong outlook for net interest income stemming in part from reinvesting proceeds from low-rate investments.

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What Kamala Harris Believes 🤔

Democrats are rapidly unifying behind Kamala Harris as their party nominee, yet the Vice President remains relatively unknown to most Americans.

That means it’s important to look at her record to see what she believes.

As VP, she’s closely identified with the Biden agenda, for better or worse, and she embraced that record in remarks on Monday.

She said President Biden’s first term has “surpassed the legacy” of most Presidents who have served two.

So mark her down as endorsing the spending blowouts that caused inflation, the Green New Deal, entitlement expansions and student loan forgiveness ✔️

Until she says otherwise, we should also assume she’s in favor of Mr. Biden’s planned $5 trillion tax increase in 2025.

Harris’s foreign policy views aren’t well known, or perhaps even well formed, apart from promoting Mr. Biden’s policies.

While she has backed the Administration’s military assistance to Ukraine, she has equivocated about support for Israel.

In March, she chastised Israel for not doing enough to ease a “humanitarian catastrophe.”

She lambasted the Trump Administration for killing Islamic Revolutionary Guard Corps Gen. Qassem Soleimani, claiming it could lead to a bigger war in the Mideast.

The killing chastened Iran’s rulers instead, at least until the Biden Administration began to ease sanctions and tried to repeat the 2015 nuclear deal.

It will be especially important for the press to ask Ms. Harris about her national security views 📰

If her handlers control her as much as White House advisers have Mr. Biden, we’ll know they’re afraid that the Vice President might not be able to handle the scrutiny.

A fair conclusion from all of this is that Harris is a standard California progressive on most issues, often to the left of Biden.

Perhaps as she reintroduces herself to the public in the coming weeks, she will attempt to modify some of those views in an attempt to appeal to centrist voters, but this will likely be an act 🎭

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