Policy insiders and political apparatchiks were aghast when Trump took a congratulatory call from Taiwanese President Tsai Ing-wen, then tweeted about it. And they couldn't wait to explain the "gaffe."
Only it wasn't a gaffe at all.
What Trump did was brilliant and potentially very, very profitable.
Here's what everybody is missing.
China Bears Still Have It Wrong
No doubt you've seen the headlines.
To hear the mainstream media tell it, President-elect Donald Trump is hell-bent on starting a trade war:
- "In China-U.S. Trade War, Trump Would have Weapons" – The New York Times
- "Election of Donald Trump Foreshadows Trade War in Asia" – Defend Democracy Press
- "Trump's Vow to Target China's Currency Could Be First Step to Trade War" – The Wall Street Journal
Speaking to Taiwan's president last Friday was a move of "bottomless pig-ignorance," according to an anonymous liberal foreign policy commentator cited in The Chicago Tribune. Others were far less generous.
Think about this for a second.
Most people who believe Trump is off the rails are Washington insiders with huge vested interests to protect on both sides of the aisle. Very few of 'em have ever visited China, let alone spent decades in global markets.
China bears have called for a total collapse every year there for the last 40 years.
Admittedly, their arguments are alluring and certainly sound convincing.
I know because I hear investors all over the world parrot them… China can't succeed because it's Communist, because China doesn't have free markets, because China doesn't have an advanced legal system, because there are ghost cities, nonperforming loans, the data's cooked… yada, yada, yada.
I really feel for these guys. They've called for China's collapse and total economic devastation every year for the past 40 years, and for 40 years they've been dead wrong.
About the Author
Keith is a seasoned market analyst and professional trader with more than 37 years of global experience. He is one of very few experts to correctly see both the dot.bomb crisis and the ongoing financial crisis coming ahead of time - and one of even fewer to help millions of investors around the world successfully navigate them both. Forbes hailed him as a "Market Visionary." He is a regular on FOX Business News and Yahoo! Finance, and his observations have been featured in Bloomberg, The Wall Street Journal, WIRED, and MarketWatch. Keith previously led The Money Map Report, Money Map's flagship newsletter, as Chief Investment Strategist, from 20007 to 2020. Keith holds a BS in management and finance from Skidmore College and an MS in international finance (with a focus on Japanese business science) from Chaminade University. He regularly travels the world in search of investment opportunities others don't yet see or understand.