E Supermarket

Today's the day the whatever hit the fan after the best unemployment data since the COVID-19 virus began ramping up led markets back into inflation fear. Last week only 684,000 new jobless claims were received (including one to NY State from the guy who stole my wallet, which resulting in a query to me because he was using my social security card.) The estimate had been for 735,000 new claims. Jerome Powell's comment was that the economic recovery is coming faster than expected, which to some extent removes the justification for the next round of government stimulus spending.

Meanwhile the good news I reported yesterday was wrong: the Empire State Building-sized container ship in the Suez Canal is still blocking that key artery, further adding to price rises, if not for oil itself, lower. The Dow-Jones opened down over 300 points, wiping out all 2021 profits for the key index.

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Bitcoin fell 10% despite the enthusiasm of my Malaysian techie who repaired the computers yesterday. Game Stop GME rose 43%+. Markets are still in thrall to SPACs and Cathie Wood.

Today I got the most exotic renewal check I ever received, with a Chinese character return address in Taipei and the US check wrapped in a supermarket ad. Which brings me to important news: that the Biden Administration is not backing down from what the Trump one asked the SEC to require from China companies dual-listed here: that they prove they are not controlled by entities of the PRC government and use the US generally accepted accounting principles in their reports. This result came after the acrimonious meeting of the US Secy of State and his Chinese counterpart in Alaska. The Holding Foreign Company Accountable Act is back with a vengeance and took down the companies it applies to and more. More on regulation below.

Taiwan Semiconductor, the largest holding by far (~20%) in Taiwan Fund, TWN, will supply Intel with chips under a new contract.

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Herbert Blank 2 weeks ago Contributor's comment

Great commentary, Vivian. The only thing constant in life is inconstancy. The only thing constant in capital market decisions is uncertainty. Many risks abound on all sides b ut articles like this helps to focus on the most salient risks associated with the best opportunities.

William K. 2 weeks ago Member's comment

A always, VL, well written, informative, and interesting. It will be interesting and possibly exciting to see how the dealings with China develop. My observation, after spending a year there one month, is that with one technically literate generation China will be an equal world power, at least financially. The only possible way to prevent that is to have all of their labor become members of either the UAW or the Teamsters unions, and contantly demand more money and less work. Yes, I am aware that this is dirty fighting at it' very worst. But that is what it would take to win.