Ideas
Chinese equities rally has further legs
China equity rally has legs because global investors are turning more positive, the renminbi has been strong enough to support flows, valuations remain cheap, record turnover shows conviction, and the earnings story is starting to improve.
US assets still offer value
There is still value in US assets because the US has a reindustrialization opportunity, low-income beneficiaries, a Fed easing bias, supportive financial conditions, inflation in check, fiscal stimulus from the One Big Beautiful Bill, and resilient growth; while Fed independence is challenged, it is not yet critically impaired.
US small caps set to broaden
The US rally is still concentrated in mega-cap tech, but the broadening story has legs in 2026 as Fed easing bias, fiscal stimulus and reindustrialization support smaller-cap companies; investors should diversify beyond the Magnificent Seven.
Diversify into Asia equities
Investors should diversify away from a concentrated US market into Asia as well as Europe, as diversification paid off in 2025 and the concentrated US rally argues for broader regional exposure.
Europe equities attractive on reforms
Europe has lost competitiveness, especially to China, but green shoots in unified capital markets and regulation plus German fiscal stimulus and defense spending can drive structural growth and a more competitive European economy, making European equities attractive.
Credit yields still attractive
Credit still has value because all-in yields remain attractive, real-money demand for yield persists, the quality of the IG market has improved, spreads are tight but not excessive, and resilient growth is supportive; monitor heavy January issuance for excess spread risk.
Iran risk lifts oil premium
Iranian unrest and the possibility of US military action are creating a geopolitical supply-risk premium in oil; Brent and Shanghai crude have jumped, though the situation is event-driven and not yet a clean directional trade.
Founder return boosts Haidilao
Founder returns as CEO effective late yesterday, which Citi expects to reaccelerate top-line growth; the stock rose 10% in Hong Kong as a positive development for the hot pot chain.
Ascentage pipeline and cash strong
Ascentage has achieved its 2025 milestones, completed a successful Nasdaq IPO, doubled or tripled its stock price, has sufficient cash through 2027, and its Takeda partnership plus global Phase 3 trial for lead drug validate its R&D and support commercialization in about two years.
China biotech M&A cycle accelerating
China biotech is recovering with more primary and secondary funding, global validation through licensing deals, and record M&A; at JPMorgan the consensus was that 2026 will bring more deals and higher dollar amounts than 2025, suggesting this is just the beginning.
Yen structurally weak
Structural yen bear: Japan has one of the slowest-growing economies, deeply negative real yields, and a massive debt pile it cannot afford to service with positive real rates; the only long-term path is debt monetization, which implies yen depreciation, though not necessarily via dollar-yen because the dollar may also weaken.
Dollar likely weak again
The dollar is likely to have another weak year as Fed independence is undermined and dollar pressure persists; he remains a structural yen bear but prefers expressing it outside dollar-yen because of expected dollar weakness.
Precious metals uptrend sustainable
Precious metals are a sustainable theme as the undermining of the Fed and dollar pressure drive gains, although the move has gone very far very quickly so tactical trading around the trend is warranted.
Japan equities fiscal momentum
The Takaichi trade is being reinforced by a snap election call; fiscal stimulus supports the economy, foreigners buy Japanese stocks hedged, and the market’s rise creates a circular momentum trade even as it increases debt concerns.
Asia, LatAm beat US
US stocks are likely to underperform the rest of the world in 2026, with Asia and Latin America as the best-performing regions; this is not a bearish call on expensive US mega-cap tech, just a relative underperformance view.
Small caps, value rotation
After years of underperformance, small caps are starting to do better and value-discounted stock markets can outperform over time; this is part of a rotation from growth to value that should continue.
Global equities still bullish
He remains very bullish global stock markets because the massive CapEx bubble is not close to bursting; the bubble is more in CapEx than in stock-market valuations, so when it eventually bursts the damage will be selective.
Treasuries okay, yields drift lower
Base case is that Treasuries have an okay year, yields hold in a range and probably decline slightly; the binary tail risk is a fiscal blowout, but that is not the base case.
Sino BioPharma innovation pipeline strengthens
Sino Biopharma has transformed from generics to one of China’s leading innovative pharma companies with strong oncology and chronic disease positions; recent acquisitions of Inova and Hai Jia add 20+ innovative programs in cardiovascular and weight loss, and abundant cash supports continued M&A and R&D.
China pharma must globalize
China is at the beginning of a new innovation era with a rapidly expanding biotech ecosystem and higher-quality companies; because domestic pricing is limited, Chinese pharma companies need to globalize through MNC partnerships and overseas expansion to capture full drug potential.
This Bloomberg Markets video, published January 14, 2026,
features Yvonne Man, Ecaterina Bigos, David Ingles, Dajun Yang, Mark Cudmore, Theresa Tse
discussing FXI, SPY, US Small Caps, AAXJ, VGK, LQD, WTI, 6862.HK, AAPG, China biotech, FXY, USD, GLTR, EWJ, ILF, IWM, Value stocks, VT, TLT, 1177.HK.
20 trade ideas extracted by AI with direction and confidence scoring.
Speakers:
Yvonne Man,
Ecaterina Bigos,
David Ingles,
Dajun Yang,
Mark Cudmore,
Theresa Tse
· Tickers:
FXI,
SPY,
US Small Caps,
AAXJ,
VGK,
LQD,
WTI,
6862.HK,
AAPG,
China biotech,
FXY,
USD,
GLTR,
EWJ,
ILF,
IWM,
Value stocks,
VT,
TLT,
1177.HK
