What Every Investor Needs to Know About China Right Now

Keith Fitz-Gerald

Some of the investment trends we talk about are electrifying – like a company that's a step away from curing a terrible disease, for instance, or one that's developed a technology that's set to improve hundreds of millions of lives and boost bottom lines.

Other times, like today, the implications are nowhere near as pleasant or uplifting to consider. In fact, in a world where "war, terrorism, and ugliness" are unstoppable trends, the implications can be, well, ugly and unsettling, to put it mildly.

But it's important that, as globally oriented investors, we grapple with these issues head-on, or we risk being caught off-balance by them. Because we do live in a world where vast, multitrillion-dollar economies are intricately connected, and a world where news – good or bad – can circle the planet in two seconds flat.

U.S. financial markets have largely shaken off the mass unrest in Hong Kong, but for reasons we're going to look at in a moment, that could change in a heartbeat.

And my job as Chief Investment Strategist is to make sure we're ready when and if that happens…

China Has Been Here Before… in 1989

I can't help but be shaken by what's happening in Hong Kong, even though, as I said, U.S. markets have largely shaken it off.

I recall Tiananmen Square in 1989 vividly. And frankly, I fear Beijing may be approaching another Tiananmen Square moment – a "2.0" situation, really.

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Westerners believe that Beijing won't risk the reputational hit that would follow armed intervention, but I beg to differ; nobody thought that in 1989 when protesters took over Tiananmen Square, either.

But as I noted on FOX Business Network this past Wednesday morning, Beijing's calculus is very different.

It's so different, in fact, that Beijing may prefer violence over any perception whatsoever of political weakness – or weakening of its all-important territorial integrity.

There's no doubt in my mind: Chinese President Xi Jingping faces unprecedented challenges if Hong Kong spirals out of control. There's a risk of a financial hit, given that 60% of China's outbound trade goes through Hong Kong. And of course, there's the ongoing trade dispute with the United States and a slowing domestic economy.

Very few people understand what I am about to tell you…

Keith Fitz-Gerald

About the Author

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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.

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