This article contains commentary which reflects the author's opinion
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You Are Going to be Rich
Ok… so for the last few weeks, the world has been whipped up into a sweaty frenzy by the MSM (they sell fear for ratings). The stock markets are reeling, toilet paper hoarding echoes black market cigarettes in 1942. US Asians are arming themselves fearing backlash from the Covid-19 virus. We know that China lied, obfuscated the outbreak. All this is fog and mist, the virus is not the story. This under-reported little gem is:
China openly stated they would withhold the supply of antibiotics unless the world bows. NOTE: They manufacture 97% of the US supply alone. China has proven to world leaders that they “have the reach, and the will, to kill populations.” This is China’s “Pearl Harbor” and they have awakened the sleeping giants.
World leaders now see that off-shoring manufacturing, technology, intelligence and strategic development has ceded domestic economic control. Now, it threatens the physical safety of their citizens. Those cheap plastic phone cases won’t save certain politicians from being dragged to the metaphysical if not literal gallows (I’m looking at you Merkel).
If I were in the year 2100 and looking back as this period in history, Trump looks like a prophet. He’s been warning us about China since the 80s. A decoupling must and will follow this crisis. Industries will repatriate operations to their home countries.
This includes cutting ties with H1-B hucksters. Initially this will result in higher consumer prices, but a leveling will occur. With returning jobs and higher income for citizens to follow. Decades of one-way economic wealth reversed, the shuttered assemblies, domestic factories and the engines of production will roar again.
China no longer will steal the profits, they will be ours to keep. As a matter of perspective, every year people line up on Black Friday. Some even camping out the night before, to get the best deals. What was $400 on Tuesday, is $199.99 on Friday morning. That’s a 50% drop in price, and people celebrate it !
Buy Low, Sell High is Always Good Advice
However, when the market takes a nose dive, people lose their minds and say stocks are worthless, dangerous and to be feared. Had you bought in 1987 or in 2008 when stocks were briefly “on sale”, you would have picked up some stocks at 10% of where they are now. Imagine owning Tesla at $50 per share. It closed today at $560.
The point is that the world is not coming to an end, but MSM wants you to believe it is. Truth is that these adjustments will take time, and some will be nerve wracking. I bet there are people like coal miners in Pennsylvania, for example, willing to wait. Individual economies will return to saner trade deals, where value is in the product and not cheap knock-offs. This will cause real quality and stock valuations to return.
The Result of It All
The overriding issue is that China, the country responsible for the giant sucking sound in your wallet, has jumped the shark. It has imploded its economy through hubris, lies and issuing a direct threat to every citizen of every country. They have no problem in watching you die. That should scare anyone more than any virus.
Whether US or Germany or Italy, countries will be bringing their manufacturing back to where they belong – within their own borders. All for their own people, safety and economic betterment. Global trade will continue. The virus isn’t the story, the economic lesson learned is. Invest accordingly.