Asian Investment Issues: Potential Politcal Risk
I attended a recent Investment in China and India Summit hosted by Financial Research Associates I will use this forum to share some of the slide/insights that were given at this summit for the benefit of those hoping/thinking/planning on investing in an Asian country – China, India or Japan.
It is difficult to predict the effect of political events on the investment environment Potential areas of conflict in Asia include:
China and Taiwan – China wants their renegade island back in the fold
India and Pakistan – historical conflicts
North and South Korea (and allies) – North Korea is developing a reputation for throwing things
China and Japan – bad blood since WWII. Watch for it to boil in August.
However, these risks are minimized when put in the context of an overall portfolio.
In addition, major events in any of these areas will affect trade and exports across the world, whether or not one is invested in these countries.
Source: Probitas
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