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China to invade Taiwan. Really?
It’s not as easy as some people think
We live now in a world of doom and gloom. The pandemic, war in Ukraine, inflation biting into anything we want to buy and talk of recessions and the end of global growth.
As an investor I always try to gauge the mood, the sentiment of the street. The bears and pessimists are not just in charge, they are relishing in their broken clock finally coming right. Many seem to be cheering the world burning and it seems quite fashionable, even, to be so negative. It is seen as a sign of wisdom.
So among these trends is the talk of “Ukraine now, Taiwan’s next.” That China will snatch up Taiwan with little fuss, perhaps while the world is distracted with Russia and Ukraine. Apart from the sheer humanitarian disaster that would be, as investors we need to note that Taiwan is the leader, by far, in semi-conductors that power so much of the world economy. So we need to pay attention to Taiwan.
Let’s take a look at it.
Where there is a will
President Xi of China has made abundantly clear he desires Taiwan’s unification with China during his term. Much of his political capital is built around this promise. When it comes to such leaders, one should take what they are saying seriously. Not only them, but also the…
