Podcast #38 Putin Xi

Let’s Go Brandon  

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CHINESE STOCKS:

I

rarely purchase equities in third world countries, but I believe China might

be an interesting equity play right now.  I was convinced that Chinese

Ch Xi Xingping was poised to invade Taiwan this year.  Remember folks

that Taiwan manufactures 64% of all computer chips made on this planet. 

China spends some $300 byn on computer chips…every year.  That’s more

than they spend on their entire military budget.  When I hear Ch Xi wax

poetically about reuniting w/ Taiwan, I roll my eyes because I understand the

desire to take Taiwan is purely financial and political

It’s

political because Ch Xi is up for re-election by the 25 person Politburo on

Oct 18 of this year.  Apparently Xi has locked-up hundreds of thousands

of fellow CCP members for corruption in his first 9.5 yrs in office, and some

of those guys are getting out of prison as their terms expire.  I have

read that they have the “long knives” out for Xi.  They literally want

him dead.  Keep in mind that only 1/13 Chinese are CCP members.

Starting

one year ago, Xi initiated a crackdown on Chinese tech companies.  Some

stock prices are down as much as 80% and many of the old-guard, hardliners

who owned shares in those tech stocks aren’t too happy w/ Ch Xi.

I

believe Ch Xi has watched Putin’s failed invasion of Ukraine and re-drawn his

plans.  Fox News is reporting that Putin has lost ⅕ of

his army in his first 4 weeks of fighting; 15,000 are dead, and 25,000 are

wounded or MIA.  Ukraine is going to have one hell-of-a time housing

10’s of thousands of Russian POW’s.  

So Xi

has watched this botched invasion, and more importantly the western world’s

reaction to it, and has decided to go w/ plan B.  I believe Plan B