If Hong Kong Spirals Out of Control, We Could Take a Massive Financial Hit
I can’t help but be shaken by what’s happening in Hong Kong, even though U.S. markets have largely shaken off the rioting, chaos, and police action there so far. You see, I recall Tiananmen Square in 1989 vividly and fear that Beijing may be approaching another Tiananmen Square moment.
A 2.0 situation really.
Westerners believe that Beijing won’t risk the reputational hit that goes with armed intervention, but I beg to differ. Nobody thought that in 1989 when protestors took over Tiananmen Square either.
Beijing’s calculus is different for reasons I noted on Fox Business Network’s Varney & Co. this past Wednesday during a special phone interview. Worse, Beijing may prefer violence to the perception of political weakness or territorial rights.
- Beijing’s calculus is different when it comes to “solving” Hong Kong
- US markets have shaken off the unrest so far but this one thing could change that instantly which is why savvy investors should prepare ahead of time.
- Chaos always creates opportunity (and here are two great ways to play it).
Until next time,