‘Nothing lasts forever.’ Plain spoken and no-nonsense, this is a saying that governs all aspects of our lives. And when it comes to the markets, this impermanence is the shadow that is always lurking behind the scenes.
China is no longer a copycat of the West. They’re quickly becoming an innovation nation just like they’ve been saying. The government just spent US$10 billion to build a quantum lab. According to the OECD, China is now the second largest scientific powerhouse, behind the US. And as you can see, China is pumping out patents like crazy.
What do you do when you’re under political pressure for starting a potentially damaging trade war? You change the conversation and focus peoples’ attention on a real war, and cast yourself as the moral hero. What’s been happening in Syria for the past five years or so has been a disaster, and every major country involved has blood on their hands.
The threat of a trade war between the US and China has diminishing. It’s interesting to note that Trump’s continued threats seem to have forced China’s hand. Now that the threat of a US–China trade war is receding, Australia can turn its attention to more positive developments. The Australian government is hinting towards trade talks with Britain.
China already is one of the great patent producers in the world. Now that the government has doubled their quota, you’d expect China to increase their tech focus. China isn’t just thinking for themselves anymore. They’ve become one of the most important contributors to our global technology advance. And they’re helping to create must-watch industries, which hold huge promise for the future.
I’m not sure what’s worse; Trump’s trade war that is set to wipe billions more from the Aussie market today, or Steve Smith’s attempts to wipe one side of a cricket ball with tape to get some sort of a demented edge to win a cricket game. But when you think about it — or at least when you think about it the way that I do — both situations might not be as bad as you think.
A trade war is on everyone’s mind. Even central bankers, who usually don’t comment on such events, are talking about the dangers of such a scenario. On Friday, we also followed US stocks down as investors digested Trump’s further tariff plans. If China retaliates, investors could assume the worst. Thus, it would be reasonable to look in these industries for bargains...
China’s booming AI industry and massive government investment in the technology have raised fears in the US and elsewhere that the nation will overtake international rivals in a fundamentally important technology. As time rolls on, technology continues to increase its dominance over everything else. Just make sure you make money on this megatrend before super intelligent AI changes everything.
In 2015, when air pollution was extreme, it was a contributing factor to 1.6 million deaths in China. That’s why EVs are a must, not just a fancy new technology they’d like to have around. Down under we have plenty of resource companies linked to EV technology. If one can gain a contract with a Chinese EV manufacturer, the shares could explode.
For a long time, Silicon Valley has always been the tech hub of the world. But in the background, teeming tech cities are rapidly gaining on the Valley. These incubators in the East may soon rival and even surpass the Valley in the coming years. And there’s plenty of growth potential in it for you, along the way.