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 Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean. In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.