Why did Stocks Drop:How Pelosi's Taiwan Visit Can Affect Our Portfolio & the Global Market 🇺🇸✈️🇹🇼📉📈 (Part 1) $Taiwan Semiconductor Manufacturing(TSM)$ $iShares MSCI China ETF(MCHI)$ 

📰News Summary Across Press🗞 :

(1) House Speaker Nancy Pelosi landed in Taipei on 2/8 (Tue) night.

(2) A visit to Taiwan by the 3rd most important representative of the US government would be a clear sign of diplomatic efforts to strengthen ties between US🇺🇸 & Taiwan🇹🇼, a sovereign island country to which China🇨🇳 claims full sovereignty. Tension between 🇺🇸 & 🇨🇳 around Taiwan’s sovereignty has been escalating during the past few years, & Pelosi’s visit is not welcomed. Prior to her arrival, Beijing warned of the "egregious political impact" of her visit to Taiwan (also see photo on comments from China's Assistant Minister of Foreign Affairs, Hua Chunying).

(3) The Washington Post published a scathing op-ed by Pelosi just as she landed stating:

➡️ "We take this trip at a time when the world faces a choice between autocracy and democracy,"

➡️ "We cannot stand by as the CCP proceeds to threaten Taiwan — and democracy itself."

➡️ "Our congressional delegation's visit should be seen as an unequivocal statement that America stands with Taiwan, our democratic partner, as it defends itself and its freedom."

(4) On 2/8, China reportedly levied new import bans on more than 100 Taiwanese products, imposing a quick economic cost on Taipei for its role in Pelosi's high-profile visit. The Chinese military also held live-fire exercises all day on 30/7 (Sat), just 80 miles from Taiwan.

(5) Managing partner (Stephen Innes) at SPI Asset Management, said, "No party wants a real war, but the risk of mishap or even aggressive war game escalation is real, which could always lead to a tactical mistake,"

🤔💭 How Pelosi's Taiwan Visit 🇺🇸✈️🇹🇼 Can Affect Our Portfolio & the Global Market 📉📈?

(1) According to Reuters, hours after Pelosi landed, concerns about an international flare-up led 4 major stock indexes to drop at least 2%.

➡️ Blue-chip CSI300 index fell 2%

➡️ Hang Seng index fell 2.4%

➡️ Shanghai Composite Index lost 2.3%

➡️ China Enterprises Index lost 2.5%

➡️ Chinese defense stocks rose while Taiwanese shipping & tourism fell.

➡️ Tech giants, property developers, healthcare, resources & new energy all fell.

(2) On the US front, stocks were under pressure with the DJIA down 1.23%, S&P 500 lost 0.67% & Nasdaq 0.16%. Investor sentiment also took a hit after a rising number of Fed officials dismissed recent optimism about an upcoming reversal in monetary policy, warning about the need to keep raising rates aggressively to battle inflation.

(3) Taiwan’s unique expertise in the manufacturing of technological products-most notably semiconductors-makes it a strategic ally in any plan surrounding the production & commercialization of consumer electronics, cars & a wide range of products. Taiwan Semiconductor Manufacturing, $Taiwan Semiconductor Manufacturing(TSM)$  the world’s leading manufacturer of advanced chips fell minimally, closing 0.3% lower on 2/8.

(4) Blackrock’s iShares MSCI China ETF, $iShares MSCI China ETF(MCHI)$ an exchange-traded fund providing exposure to large & mid-sized companies in China was down 0.57%

Chief strategist (Marko Papic) from Clocktower Group, explained why stocks dropped during Pelosi's visit:

⚠️The odds of an accident arising from the increased military presence near Taiwan are rising causing stocks to drop & suggested that in the near-term, investors may consider hedging such risk with a tactical short position in Chinese equities & currency.

‼️ The Bottom Line: Companies & sectors that depend on peaceful relations between the US government & the Chinese Communist Party could take a hit.

🤔💭: I’m still bullish 🐂 about TSM at this point in time but bearish 🐻 about MCHI & other Chinese stocks.

Fellow 🐯🐯🐯,

(1) Do you think 🇨🇳 & 🇹🇼 will escalate into a war just like 🇷🇺 & 🇺🇦❓

(2) Which stocks are you bullish & bearish for❓

Do share your thoughts with me in the comments section & please help to like my post, many thanks 🤗

As usual-🤔💭 Consider POV & Actions of investors + 👩🏻‍💻👨🏻‍💻 Research + 🗑FOMO & Greed = Investing Wisely 🤓🤗 + Accumulating Wealth 💵💰

Source websites: Benzinga, global times, CNBC, newsweek, reuters, forbes, CNN business, bloomberg, wall street journal, fortune, & reuters.

@Daily_Discussion (3/8) @TigerStars @CaptainTiger @MillionaireTiger 

# Share Trades to Win Coins! (3 Aug)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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  • LMSunshine
    ·08-11
    @TigerStars All my other posts that were previously “hot” have changed to “pick” when I get a notification for featured post, but this one didn’t change.
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  • LMSunshine
    ·08-11
    @TigerStars I received notification that this post is featured, but the “hot” label wasn’t changed to “pick”. Are you able to help change the label to “pick”?
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  • HHM13
    ·08-07
    Well analysed for TSM.
    How about NVIDIA?
    Any impact?
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  • Chrise
    ·08-05
    Wonder what she is trying to achieve from this?
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    • LMSunshine
      No idea…i feel it’s creating tension for no benefits
      08-06
      Reply
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    • LMSunshine
      Appreciate you sharing your thoughts,love the convo🤗Hope to hear more from you!Do check out other posts on my homepage & please help to like,many thanks🤓Let me know if you want me to like yours too!
      08-06
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  • jat
    ·08-05
    the mkt fall may be to her favour ... both her and her husband are traders
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    • LMSunshine
      Oh man…
      08-06
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    • LMSunshine
      Appreciate you sharing your thoughts,love the convo🤗Hope to hear more from you!Do check out other posts on my homepage & please help to like,many thanks🤓Let me know if you want me to like yours too!
      08-06
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  • SandDust
    ·08-05
    She bought lots Put for Baba
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    • LMSunshine
      Oh man…
      08-06
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    • LMSunshine
      Appreciate you sharing your thoughts,love the convo🤗Hope to hear more from you!Do check out other posts on my homepage & please help to like,many thanks🤓Let me know if you want me to like yours too!
      08-06
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  • Heng heng, pls give me a like
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    • LMSunshine
      Liked😉Anytime you need a like,just go to my homepage & leave a comment in my latest post.I’ll help like when I see it.Do check out Aug posts on my homepage & please also help to like,many thanks🤗
      08-05
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  • Alvinkctan
    ·08-05
    Noted with thanks.
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  • Your info is helpful, thanks🙏.
    1) china will not unless force to do so.
    2) TSM will bearish, china chipmaker will bullish.
    Reply
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  • dallanube
    ·08-04
    US planned to burn another part of the world
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  • Andie8392
    ·08-04
    good post . thanks for sharing
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  • Epee
    ·08-04
    Thanks for sharing!
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  • Oldhead
    ·08-04
    She did it for her personal interest first and foremost.
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  • boonk
    ·08-04
    arrogant lady
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  • Yolly08
    ·08-04
    Nice sharing👍🏻
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  • ey79
    ·08-04
    China needs to take action,  bearish on china stock.
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  • Philipoo
    ·08-03
    Nice! Like please
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    • LMSunshine
      Liked 😉 Do check out other posts on my homepage & please help to like, many thanks 🤓
      08-03
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  • Hap
    ·08-06
    👍
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  • GiselleC
    ·08-06
    Ok
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  • YSSI
    ·08-06
    Ok
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