Dear Reader, On 23 July, I presented an urgent investment report to Australians. It centred around Australia’s ‘economic divorce’ with our biggest trading partner, China. To date, everything I predicted in that report has progressed as I expected. Which makes the investment strategy I proposed even more compelling than when I first published it on 23 July. If you click here, you can get an updated version of that initial report. If you want to see through the COVID noise — and get a proper read on the biggest dangers to the Australian economy right now, and how to invest with them in mind — I urge you to read it today. I think the ongoing attacks from China constitute a far bigger long-term threat to our economy than the virus. And yet, predictably, they’re only getting side mentions in the media. Lockdowns, infection numbers, etc will always get more clicks than China putting tariffs on Aussie-grown barley. But if you’re smart enough to connect the dots, you’ll see there’s a deadly pattern forming here for Australia’s economic future. Stark summary: China doesn’t like us anymore. It DOES like what we sell to it (key resources). But its leadership is showing it’s willing to sacrifice our wine, our food and our resources to TEACH US A LESSON. We’re being cut off. Our business relationship has soured. It’s going to sour further. Trade is currently being used by China as ‘a weapon of foreign affairs’, as Mark Allison, the chief executive of agribusiness giant Elders, recently put it. And understanding how these hostilities are going to play out — and adjusting your portfolio for it — could be the single most important thing you can do right now as an Australian saver and investor. I think it’s really important you get a full understanding of this story. Because it’s moving fast. Breaks in our relations with China that were inconceivable six months ago seem to be happening on a monthly basis. Former Australian prime minister and China scholar Kevin Rudd recently wrote in the Foreign Affairs journal that the risk of armed conflict between the United States and China in the next three months was ‘especially high’. That may be overstating it. But the fact that credible voices are making such claims right now, without being laughed at, tells you just how bad things are getting. Click here to see where all this could be leading… Regards, Greg Canavan,
Editor, Crisis & Opportunity | 