Relief Rally Play
BUY Long Leveraged Nasdaq LNAS:ASX & ASIA Tech ASIA:ASX
We think the next phase will be a grind higher over the coming weeks asTrump dials back his threats and the long winded negotiation process of trade deals keep investors hopeful. Investors will also be focused on US company earnings which will be retrospectively positive against analyst forward predictions.
All in all, we are predicting a rally for the next 4-6 weeks and the next few days are a likely buying opportunity
The next leg down is likely triggered by recession or stagflation fears as the DOGE job cuts start to show in the June employment data and inflation data as the tariffs begin to show in the numbers.
LNAS
BUY <7.42
Target >9.00 (+21%)
THIS IS A SHORT TERM PLAY ONLY AND WE WILL BE QUICK TO EXIT AT OUR PRICE TARGETS
Catalyst – Trump Backpedal
Watching Trump’s most recent press conference at 655am AEST, he almost walked off with his tail between his legs, backpedalling in a number of issues “I’m not firing Powell”, “President Xi is my friend” “we are doing trade deals” then abruptly …. “thank you, no more questions”
Treasury Secretary Scott Bessent stokes hopes for a possible de-escalation in the U.S.-China trade war and President Trump showed the first signs of contrition in a press conference after the close
U.S. Treasury Secretary Scott Bessent reportedly said that he expects de-escalation in the ongoing tariff standoff between the US and China in the “very near future, CNBC reported, citing individuals present at the event.
“The next steps with China are, no one thinks the current status quo is sustainable” with tariff rates at their current levels,” Bessent said at a private investor summit hosted by JPMorgan Chase, CNBC reported, citing sources. The Treasury Secretary said he expects there will be a de-escalation” in the U.S.-China trade war in the “very near future,” a person in the room told CNBC.
The remarks come on the heels of a Bloomberg report. citing individuals present at the event, that the Treasury Secretary anticipates a de-escalation in the situation.
Comparable Bear Market Relief Rallies
ASIA Tech ASIA:ASX
Trumps continuous attempts to circumvent the law like the threat to “fire” Powell is another in a long list of executive branch “overreaches” and this is making investors reconsider their US investments and what they are realising is that there is not only opportunity, the rest of world is cheap! This is why we are also recommending Asian Tech.
With Asian tech quicky catching up with their US counterparts, solid global tech businesses like Baidu, Alibaba, Tencent, TSMC & Samsung (the obvious of beneficiary of Apple’s manufacturing quandary) there are opportunities abound!
Key Reasons for Investing:
- Capture AI and Innovation Growth: The successful launch of China’s DeepSeek R1 AI model demonstrates Asia’s emerging leadership in AI and advanced technology, suggesting robust long-term sector growth.
- Geopolitical Diversification: Investing in ASIA provides an effective hedge against geopolitical and regulatory risks concentrated in US technology companies, enhancing portfolio resilience.
- Exposure to Key Tech Markets: The ETF strategically invests across major Asian technology hubs including China, South Korea, Taiwan, and India, reducing geographic and sector concentration risks.
- Strong Growth Potential: Major holdings are dominant market leaders well-positioned in high-growth industries:
- Alibaba Group (11.71%) – Leader in e-commerce and cloud services.
- Tencent Holdings (10.55%) – Global leader in gaming, social media, and fintech.
- Taiwan Semiconductor Manufacturing Co. (8.95%) – World’s largest semiconductor manufacturer, essential to global electronics supply.
- Samsung Electronics (7.99%) – Leader in consumer electronics and memory chips, benefiting from increased global semiconductor demand.
- Xiaomi Corp (7.13%) – Rapidly growing smartphone and IoT device innovator with strong global market presence.
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.