Southbank Investment Research Podcast
Business:Investing
Take a look at the market…
It’s not pretty.
The stock market is floundering. The crypto market is floundering.
Now cast your eye over the stock market in China…
It has taken a beating the likes we’ve only seen previously in 2008/09 and more recently in March 2020 in the early stages of the pandemic.
Some stocks that were the darlings of the market, Alibaba, JD.com, Baidu are trading upwards of 50% off their recent highs.
Is China a happy hunting ground now? You can bet your bottom dollar if you’ve got any kind of emerging markets fund or ETF you’ll have a big Chinese exposure. So do you load up for the long Chinese run back to power, or will there be some more pain before gain?
And if China is on the comeback trail what does that means in the broader geopolitical landscape?
Having seen Russia recently cut out of the global financial system, they’ve turned to their Chinese buddies for a bit of salvation, and there’s talk of oil getting paid for in Yuan.
So what?
Who cares?
What really matters is the optics of all this for the markets. And perhaps the really bigger story here is a glimpse at a precursor to a system of digital currency issued by central banks that is coming to your front door faster than you think.
There is of course a fast and easy way to ensure that regardless of these geopolitical shenanigans you can build and grow wealth. Even when the markets are down, inflation is up and the cost of living is soaring, you can earn more money in new ways that defies all the headwinds we face.
There’s a few dots to connect and we certainly try to pick through the noise this week in what is an exciting, slightly worrying, but always optimistic episode of the Exponential Investor Podcast.
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