At the very start of the pandemic, on a plane from somewhere to somewhere, I pulled a furious article out of the China Daily. The author was maddened by criticism of Chinese handling of Covid. The New York Times had accused it of “Mao Style Socialist Control”; Foreign Policy had gone for plain old “Incompetent”; and China Uncensored for “Authoritarian Crackdown”. But as far as the paper was concerned, the criticism was all about the West running a xenophobic anti-China campaign “because they really want you to hate.”
I kept it, then, as a reminder of just how Chinese and US relations were breaking down. But now it is also a trying reminder of how much less of the moral high ground the West is hanging on to than it was even in March. We aren’t exactly welding people into apartment buildings here. But there’s a nasty precedent in being told that not only must we never see more than five other people at the same time, we must report those who do to the police. So are we doing things the right way?
Time will tell of course. But part of the answer could come from James Ferguson’s analysis of the testing data in this week's issue. The other part might be about the damage caused by lockdowns: as James notes on our podcast this week, maybe we should stop talking about how Covid is wrecking lives and economies and start talking about how the response to Covid is wrecking lives and economies – turn to the best of this week's columnists page for the nightmare effects of lockdown on much of Africa.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The idea that we are perhaps worrying a little too much about Covid is seconded by the latest Bank of America Global Fund Manager Survey. A second wave remains the biggest worry for managers. But it is being fast caught up by concerns about global trade wars (very valid – see above!), the US election and the rising odds of a “systemic credit event”.
There are also two new entrants to the worry list this month – inflation and a new tech bubble, both things I suspect MoneyWeek readers have (quite rightly) had on their worry list for some months now. We still worry about tech valuations but we don’t think the market as a whole is in bubble territory: the median price/earnings ratio of the S&P 500 is 17.5. Not cheap – but not a bubble either.
Elsewhere there are opportunities aplenty (but avoid pigeons – see this week's "Great frauds in history"). China is booming (for more, turn to the markets pages). And even after the extraordinary recovery since March, the shock of the pandemic has left some pockets of value. This week, we also look at how to invest in the end of oil – there will be a wave of money pouring into anything remotely green post-pandemic.
Want to feel good and make money at the same time? Here’s your chance. If the former is less important to you than the latter, look to the end of that story: we are only at the beginning of the end of oil so perhaps you should not entirely neglect the old industry players.
Finally for the genuinely contrarian, Matthew explains why to start buying Carnival on this week's Trading page. Cruise ships are pretty filthy (they mostly burn heavy fuel oil) and about as Covid-unfriendly a business as any. But, says Matthew, Carnival’s finances are pretty shipshape – and people will cruise again. They may even go back to their offices again – quite soon. Particularly if James turns out to be right, and normalisation is nearer than we think.
-
The rise of Robin Zeng: China’s billionaire battery kingRobin Zeng, a pioneer in EV batteries, is vying with Li Ka-shing for the title of Hong Kong’s richest person. He is typical of a new kind of tycoon in China
-
Europe's forgotten equities offer value and growthOpinion Jonathon Regis, co-portfolio manager, Developed Markets UCITS Strategy, Lansdowne Partners, highlights forgotten equities he'd put his money in
-
The rise of Robin Zeng: China’s billionaire battery king
Robin Zeng, a pioneer in EV batteries, is vying with Li Ka-shing for the title of Hong Kong’s richest person. He is typical of a new kind of tycoon in China
-
How retail investors can gain exposure to Lloyd’s of LondonIt’s hard for retail investors to get in on the action at Lloyd’s of London. Here are some of the ways to gain exposure
-
The goal of business is not profit, but virtueOpinion Serve your customers well, and the profits will follow, according to a new book. It rarely works the other way around, says Stuart Watkins
-
Earnings estimates are a rigged game – especially in the USThe number of US stocks beating earnings estimates tells us only that guidance has deliberately been set too low
-
Why is Britain's industrial base crumbling?Opinion More and more factories in the UK are closing, and the government doesn’t seem to care. What’s going on?
-
Scotland's former first minister Nicola Sturgeon leaves behind a toxic legacyOn the left, Nicola Sturgeon is seen as something of a political hero. That makes sense… but only if you exclude her actual record in office
-
It’s time to start backing Britain – the best investments to buy nowThe UK stock market has been languishing for decades. But the tide is turning and smart investors should buy in now
-
Car finance mis-selling judgment could be a big blow for the banksOpinion The car finance mis-selling judgment could still be disastrous for big finance even though banks dodged the worst possible outcome
