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Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

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Biden-Xi phone call today

China's president Xi has mentioned "no limit" support to Putin prior to the invasion. Exactly what "no limit" details is unknown - military, financial, or both remains an open question to the West. In addition, China and several other countries did not condemn the Russian invasion. In the longer term, China their own ambition being the dominated economy at the expense of US.

Since China has a larger economy than Russia and trades across the globe, how China supports Russia has direct impact on the investors going forward. Below is a CNN article discuss the possible scenarios.

https://cnn.com/2022/03/18/politics/biden-xi-call-russia-ukraine-importance/index.html

I post this topic as off-topic but it has directed implication on future investment.

Comments

  • "I post this topic as off-topic but it has directed implication on future investment."

    @Sven- Yes, many of my posts fall into the same category: perhaps not specific to any particular investment, but certain to affect financial matters generally. Many MFO posters do not seem to appreciate such topics in the financial sections, so I place them here in the "Off-Topic" section. I think that this is unfortunate, but one must respect the community.


  • Geopolitical risk readily translates into financial risk. If the question of is Russia investible was posted a year ago. Most likely it would be yes due to the oil and the tie to global economy. Today, it is the opposite.

    China posts a different set of questions and the risk is actually larger since they dominated the emerging market: it has grown to a whopping 34% in VG emerging market index, VWO while Russia is less than 1%.
    https://investor.vanguard.com/mutual-funds/profile/portfolio/vemax

    Conflict with China would not be good for either sides and the potential damages would reshape the world. Here is another article from Professor Snowball that was enlightening. Perhaps you will find it informative from an investor's perspective.
    https://mutualfundobserver.com/2021/11/red-flags-over-china/

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