As the world awakens to the pure evil of Putin’s Russia, Xi’s China is in the crosshairs. Global pension and endowment investments in Russian stocks and bonds are at risk being completely wiped out after errantly turning a blind eye to Putin’s despotism. 1/7
MSCI and other global indices invested in Russia are almost completely trapped. We are witnessing the bifurcation of the world into two spheres. The rules-based west on one hand and the axis of authoritarian, communistic, totalitarian evil on the other. The China/Russia 2/7
‘Strategic Partnership’ announced in a joint press release on Feb 4, 2022 is worth another read. They intend to form a bond bigger and stronger than the Allied Powers of WWII. “No areas of cooperation are off the table.” It will become clear that fiduciaries that invested 3/7
in Russia, China, and any other developed or emerging market nation ruled by oppressive, dictatorial killers have abrogated their duties to their investors and should have legal action brought against them for their losses. Imagine investing into Chinese companies that refuse 4/7
to submit themselves to PCAOB covered audits…investments also subject to the whims of an autocratic ruler like Xi Jinping who single-handedly decides which sectors will be targeted for ‘crackdowns’. How does one run that discount model? 5/7
I fear that global pension, endowment,and other invested capital in Chinese stocks and bonds will suffer a similar fate to trapped/frozen/indefinitely suspended stocks and bonds In Russia. History won’t be kind to those managers that ignored the multitude of obvious red flags 6/7
In Russia and China and invested anyway.FOMO is a terrible defense for greed, avarice,and investing in despotism. @RayDalio @BlackRock @MSCI_Inc #RussiaUkraine #RussiaUkraineWar #China #ChinaExposed #Genocide #Fiduciary @SECGov @GaryGensler @SquawkCNBC @andrewrsorkin @davidfaber
• • •
Missing some Tweet in this thread? You can try to
force a refresh
