Nancy Pelosi, age 82, caused a lot of trouble by visiting Taiwan. A territory China regards as a breakaway province.
But you have to admire Nancy for two things. Her courage. And her conviction.
One Chinese ultranationalist actually suggested they should shoot down her plane.
For many, even the thought of that scenario would have prevented them from visiting.
Nancy Pelosi and Taiwanese President Tsai Ing-wen. Source: Taiwan Presidential Office / AP
Some took the stance that her visit was reckless and provocative. She shouldn’t have gone.
But then who will stand up for isolated democracies? For the freedom of those who seek self-governance?
We have more than enough weak and spineless people in this world.
I admire those with courage in the face of aggression.
What did Pelosi achieve from her visit to Taiwan?
Yes, she ‘poked the bear’. But she also reminded that same bear that its prey is not alone.
American financial markets continued to edge upward during the ‘crisis’ of her visit.
The vote of the economic crowd acknowledged this is an ongoing tension. But the status quo is unlikely to change anytime soon.
There’s also a growing awareness from investors: the prosperity of most American business is less reliant on China than the other way around.
‘Reshoring’ and diversifying away from geopolitical risk can create new opportunity.
There’s a greater lesson in this.
Whatever your view on the Taiwan situation, courage is remarkable. It can bring rewards.
Wealth leaves clues
We run this country’s only late-night trading desk, pursuing opportunities in the global markets. Especially in Europe, where currencies are economical right now.
Our clients are Wholesale or Eligible, due to wealth or experience.
By definition, we serve those in the top 10% of the wealth strata.
Most have made courageous decisions at some point in their financial lives. Accepted calculated risks. And taken action they believe in.
- They have bought properties around the world.
- Immigrated to a new country.
- Started, bought, and sold businesses.
- Dealt with losses and setbacks in life.
- They have stood up for their convictions.
Investing over the past two years has also meant investing in the pandemic recovery.
It has not been smooth.
But those who have taken the opportunity and added funds during this time are seeing rewards.
One portfolio I manage saw a gain of over $800,000 during this period.
That’s resulted from:
- Judicious investing. Buying high-conviction companies following in depth research.
- Having the fortitude to add funds when the markets exposed rare value.
- Calculating upside vs downside on the risks posed by business lockdowns, inflation, and recession.
In truth, the risks taken were not that great. Though this is said with hindsight. In fact, I wished we’d pushed buying out even further!
Still, when a company’s stock falls to a low point, some margin of safety kicks in.
With quality assets and a strong customer base, it’s unlikely to fall too much further. Then there’s diversification which adds some more protection.
Following careful analysis, if there is outlook for gains and income, the upside becomes clear.
Not all success is earned
Of course, many of our clients have also had good fortune beyond their own making.
- They have inherited significant assets.
- They have entered businesses in the right place at the right time.
- They have held property and shares over the past two decades of booming values.
Hence, if there’s one opportunity politicians should focus on here in New Zealand, it is the opportunity to provide more opportunity.
For example, the opposition is proposing lower taxes by moving brackets. This makes sense, given high inflation. But it’s not going to help those trying to climb the ladder.
When I was in Europe, we enjoyed a ‘personal allowance’. In essence, it meant that your first ~$20,000 was tax free. That’s right — 0% — until you earned beyond the limit.
There was ‘national insurance’, which meant other deductions. But, in principle, it meant that in lean years, you could still save, invest, and get ahead.
Crucially, it gave people strong opportunity to begin earning and saving. Both of which can help you prosper in the future.
Australia, in fact, does not tax your income until you reach A$18,200.
Our opportunity for you
Prosperous clients usually have some track record with courage and decisiveness.
If you’re interested in building financial freedom and need a plan to optimise this, I’d like to offer you a free consultation.
Wealth Plan is an opportunity for Wholesale or Eligible investors. (With some previous experience in investing).
As a reader of Wealth Morning, you’ll likely be in this category.
We can help you identify opportunities to go further. Much further.
Take control of a courageous financial future today by requesting a free consultation.
Editor, Wealth Morning
(This article is general in nature and should not be construed as any financial or investment advice. Wealth Plan services are for Wholesale or Eligible investors as defined in the Financial Markets Conduct Act 2013. Please request a free consultation if you would like to discuss your eligibility).