The Rising Influence of Rising Affluence

[DewDiligence]

Reply re China’s retaliation against Big Tech multinationals (from #msg-102742766):

There is, fortunately, another way to look at this problem. When investing to exploit The Global Demographic Tailwind, it’s generally safer to focus on companies who provide small- and medium-ticket goods and services rather than big-ticket items that are more likely to become entangled in political pushback and retaliation. For instance, drug/biotech companies—which sell mostly small-ticket items to a large number of people—are generally safer investments than IT and natural-resources companies. Some industrial companies such as 3M (which makes thousands of small-ticket but essential items) also fit the bill.

Another way to exploit The Global Demographic Tailwind with less risk of political retaliation in China is to make goods and services that are used to produce exports to China but are not directly sold there. MON and DE are examples of this kind of ‘TGDT’ beneficiary: they play a critical role in the massive exports of soybeans to China by growers in the US and South America.

This commentary is best read in conjunction with #msg-102475963, which poses a direct challenge to the investing theme of this board.