Daily Brief Macro: Taiwan Risks: No More “strategic Ambiguity” on US Support Against a Chinese Invasion and more

In today’s briefing:

Taiwan Risks: No More “strategic Ambiguity” on US Support Against a Chinese Invasion
Model Portfolios 60:40
CX Daily: The Shadowy Businessman Behind a Multibillion-Dollar Bank Swindle

Taiwan Risks: No More “strategic Ambiguity” on US Support Against a Chinese Invasion

President Biden’s statement committing the US to defend Taiwan will have far-reaching implications, forcing a re-think in China’s strategy.
The statement will encourage Chinese leaders to turn further inward to insulate the Chinese economy from US pressure.
Facing a more difficult position in the Taiwan theatre, it would make sense for China to find ways to appease India . India may well be a winner from that.

In the last three posts on Model Portfolios, we have looked at Global Bonds, Global Equity Factors and Global Equity Themes.
In each case we have made the case for applying the principles of Market Thinking in terms of our Confidence Scores combined with disciplined and dynamic allocation (between bonds, Factors and Themes respectively) to achieve a better risk return profile than the benchmark indices.
In particular the ability to allocate higher amounts to cash (in reality ultra short dated bonds) has enabled us to manage the downside risk and considerably reduce volatility.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network