;s no shortage of them in China, which has the world’s second-largest number of publicly traded companies. Some of them have market values below their cash on hand, despite strong cash flows. State-owned enterprises are being reformed and privatised, and many are run by competent managers looking to maximise shareholder value. The coming years could see some of them become global leaders, just as Japanese companies did in the 1970s and South Korean ones did in the 1990s.
In the past, the global economy and markets have always moved in cycles, and contrarian investing has been a successful strategy for those who are willing to go against the crowd. As the world looks towards 2025, it may be time to start looking beyond the US and its big tech companies for investment opportunities. The next stars may be found in unexpected places, and those who are willing to take a chance on emerging markets and overlooked companies may find themselves ahead of the pack in the years to come.\”