Hard to disagree with her or the reasoning of the podcast host.
https://www.youtube.com/watch?v=ffO3VxzQReM
The macro question is, how does it impact US equity markets?
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The macro question is, how does it impact US equity markets?
The last two presidents have whittled down how much business we do with China. Now our companies over there will not be operating as much, and might as well come home to build more factories.
The Chinese PBOC needs to determine with Xi whether to print for growth and inflation or to cut the money supply with higher interest rates and an even deeper recession/depression. The latter makes sense because lending was not going to happen anyway. Meaning the recession wont get much worse than it is. Yet inflation is be held down slightly which is the more important response.
I think but do not know that Xi is far too self interested to do the right thing. Dictators print and print some more.
For us we can sell and sell some more. China’s other trading partners will turn to us even if it is with RMBs.