Set to 5 year view on the charts of FTSE (UK 100) and Hang Seng...

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    Set to 5 year view on the charts of FTSE (UK 100) and Hang Seng (HSI- HK)


    https://www.tradingview.com/symbols/TVC-UKX/


    https://www.tradingview.com/symbols/TVC-HSI/

    ...and you can clearly see that the markets in those two jurisdictions went nowhere the past 5 years and did not make all time high post-COVID crash.

    It is not coincidental that in both jurisdictions, their macro country fundamentals have been somewhat compromised , in the UK due to Brexit (since 2016) and in Hong Kong due to increasing sovereign risks as policies are no longer deemed independent from intervention from China. In the case of UK it was by choice, in the case of HK it wasn't.

    Hence it is important that Australia does not fall into the same way as both of them by pursuing policies that compromise our macro fundamental outlook going forwards ; our significant reliance and dependence on the China market is our Archilles heel* that could well compromise our future outlook in the same veneer (as that of UK) if we continue with the existing policy trajectory of alienation and provocation. In Australia's case, you could argue it is by choice and you could also argue it is not, because our "sovereignty" has been compromised - but whichever way one decides to argue, the potential outcome of that policy trajectory is the same and does not augur well for our macro prospects.

    ..bet you never thought of that when you stood by the Buy and Hold mantra.

    * similarly mapped onto our COVID destiny, our strength in keeping cases very low at the outset has also become our weakness in that we got complacent with vaccines.  Our large export growth to China being our strength for our economy has also become our potentially single point of failure if our soured relationship deepens, and there is no country with large appetite for our iron ores than China.

    We Are the Choices We Make.
 
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