Summary

Sean believes that risk assets will reach all-time highs in next 12 to 18 months - driven by China, not the US. We are going to see the end of US exceptionalism. An Entext structural theme is the rise of China as a competitor to the US, particularly in terms of Technology, which has been highlighted and accelerated by COVID-19. China has beaten the pandemic using big data through GPS tracking on smartphones and via wide-spread testing and genomic sequencing of the virus. A North Asian Tech hub is developing around Korea, Taiwan, Japan and China. US tariffs are likely to create serious confrontation - cyber warfare is a key theme - cyber stocks look attractive. Regarding fiscal stimulus, Sean believes it will be over 10trn dollars in the US which should finally produce inflation. We are going to see bankruptcies across the shale fracking sector and VC funded business, which were previously a major drag on inflation. Oil prices will reach $70-90 in the next two years. The political compass has spun in a very different direction as Government’s become bigger risk managers, increase taxes, run larger deficits and the stimulus goes towards fighting climate change - a green revolution, improving healthcare systems and supporting the unemployed through UBI models. Companies mentioned include: Tencent, Bitdance, MegVii, SenseTime, JD.com, Sony, Alibaba, Huawei, Hyundai, Samsung, Hynix, TSMC, IAG, Ryanair, American Airlines, AirBnB, Amazon, Ocado, Tesco and Sainsburys.

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