Excellent note from Ray Dalio about the recent interventions of the CCP
https://twitter.com/georgemagnus1/status/1421846764395634692
"To understand what’s going on you need to understand that China is a state capitalist system which means that the state runs capitalism to serve the interests of most people and...
...that policy makers won’t let the sensitivities of those in the capital markets and rich capitalists stand in the way of doing what they believe is best for the most people of the country."
"Rather, those in the capital markets and capitalists have to understand their subordinate places in the system or they will suffer the consequences of their mistakes. For example, they need to not mistake their having riches for having power for determining how things will go."
"Assume such things will happen in the future and invest accordingly. But don’t misinterpret these wiggles as changes in trends, and don’t expect this Chinese state-run capitalism to be exactly like Western capitalism."
"As for investing, as I see it the American and Chinese systems and markets both have opportunities and risks and are likely to compete with each other and diversify each other. Hence they both should be considered as important parts of one’s portfolio."
"I urge you to not misinterpret these sorts of moves as reversals of the trends that have existed for the last several decades and let that scare you away."
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