Fisher: Don’t Let ‘Lost Decade’ Talk You Out of China Tech

Is a “lost decade” of Chinese tech stocks malaise ahead? Huawei CEO Ren Zhengfei’s much-discussed prediction of a “very painful historical period” sounds scary. And 2022’s bevy of global fears and tech-led declines in the Chinese stock market seemingly lend his words credence. But slow down. While some uncertainty confronts Chinese tech today, beware of extrapolating present concerns into the far future. History shows “lost decade” predictions and distant-future forecasts fail. Their popularity today says more about present sentiment than actual market future returns. Counterintuitively, such fearful forecasts are in fact bullish. Let me tell you why.