The Rising Influence of Rising Affluence

[DewDiligence]

MRK’s 2Q19 China sales=$745M, +51% YoY in constant currency.

I’m starting to wonder whether this is a reason to be long MRK (as I am), or a reason not to be.

I continue to lean toward the former (i.e. bullish) view because MRK's drugs—such as Keytruda and Gardasil—are not where I would expect China to seek trade-related retaliation against US-based multinationals.

Better targets are such companies as FDX, who is already in the penalty box over its handling of shipments to Huawei.