I have a lot of china exposure and have been thinking of using INTC as a hedge. There are two scenarios that I am considering: deglobalization and an invasion of Taiwan. De-globalization I see as a long term trend and not something that requires an immediately hedge. Invasion of Taiwan could be a black swan event but I think we learned a…
I have a lot of china exposure and have been thinking of using INTC as a hedge. There are two scenarios that I am considering: deglobalization and an invasion of Taiwan. De-globalization I see as a long term trend and not something that requires an immediately hedge. Invasion of Taiwan could be a black swan event but I think we learned a lot from the Ukraine war. It would take a massive buildup of military force that couldn’t be hidden from satellites so there would be a considerable amount to time to exit a position. The more near term threat would be a ban by the U.S. or CAN on foreign ownership of Chinese securities. That is harder to hedge. Not sure how that would affect FXI and other etfs.
I have a lot of china exposure and have been thinking of using INTC as a hedge. There are two scenarios that I am considering: deglobalization and an invasion of Taiwan. De-globalization I see as a long term trend and not something that requires an immediately hedge. Invasion of Taiwan could be a black swan event but I think we learned a lot from the Ukraine war. It would take a massive buildup of military force that couldn’t be hidden from satellites so there would be a considerable amount to time to exit a position. The more near term threat would be a ban by the U.S. or CAN on foreign ownership of Chinese securities. That is harder to hedge. Not sure how that would affect FXI and other etfs.