Pro-labour policies continue to proliferate. Markets love the GDP multiplier of rising wages, but interest rate and corporate cashflow expectations are probably wrong.
I really don't understand why people think the Chinese can't compete in tech. In a number of areas like quantum communications they are probably leading. And when you are catching up in tech you have a huge advantage - you know it can be done... cutting edge technology is hard because it never been done before.... Japanese caught up to the west, and the Korean and Taiwanese did the same thing. And the Chinese will as well, maybe not today, but at some point... its just the reality of the world
The Holden EK was our family's upgrade from a Fiat 500 in the late 1960s. On the topic of lazy national champions, Nassim Taleb recently tweeted "By giving up industrial production, the West has given up industrial innovation."
Nice piece, particularly the close on Apple and the lack of innovation.
I guess the next play is trying to catch the tipping point. It’s not lost on me that while this is a Pro Labor environment from a Capital perspective, you get value and return for cash at 5%+ T-Bills.
Loved to get your view on USD, as I think this drives earnings, jobs and global trade. Cheers
The Chinese chip is a red herring. Dig deeper and you'll find it's not current tech, and not future proof. Chinese phone makers are ded.
https://youtu.be/x7IA7-TNNt0?si=i0wEPKJCt8DOQ_ny
I really don't understand why people think the Chinese can't compete in tech. In a number of areas like quantum communications they are probably leading. And when you are catching up in tech you have a huge advantage - you know it can be done... cutting edge technology is hard because it never been done before.... Japanese caught up to the west, and the Korean and Taiwanese did the same thing. And the Chinese will as well, maybe not today, but at some point... its just the reality of the world
The Holden EK was our family's upgrade from a Fiat 500 in the late 1960s. On the topic of lazy national champions, Nassim Taleb recently tweeted "By giving up industrial production, the West has given up industrial innovation."
Innovators dilemna does exist... and US corps are masters at keeping competition at bay
Nice piece, particularly the close on Apple and the lack of innovation.
I guess the next play is trying to catch the tipping point. It’s not lost on me that while this is a Pro Labor environment from a Capital perspective, you get value and return for cash at 5%+ T-Bills.
Loved to get your view on USD, as I think this drives earnings, jobs and global trade. Cheers
Yes- I need to do something on currencies... will do