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Disclaimer: The blog posts and comments on this blog and posts on social networks are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is". The blog is stocks analysis and valuation, Bitcoin, Cryptocurrencies, Artificial Intelligence, AI, deep-learning focused. Independent, unbiased AI insights. Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blog posts on this blog and posts on social networks. Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blog post and posts on social networks! The blog is property of Wolfteam Ltd. www.wolfteamedge.com Respectfully yours, Petar Posledovich

Sunday, September 11, 2022

Possible China Taiwan Invasion. Risks for Stocks


 

Russia invading Ukraine has started a chain reaction of possibly exploding long held dormant conflicts.

China's long held rivalry with Taiwan is a case in point. China considers Taiwan its territory. USA sending politicians to Taiwan is only stoking the pressure and long held tensions.

If China invades Taiwan, the first reaction will be Apple Inc, the Mac, iPad, iPhone producer stock and respectively market capitalisation falling by more than 50 % in the space of several weeks.

As witnessed by the Apple 7th September event, news on Apple tend to exert huge influence over technology stocks mainly represented on the Nasdaq Composite and by extension over the broader US stock market and further on global stock markets due to the interconnectedness of the global economy.


Apple Inc makes more than 300 billion USD a year in revenue and a huge, broad chain of suppliers will be affected if Apple Inc runs into trouble if China invades Taiwan. These suppliers have suppliers of their own and the chain reaction will go on and affect the whole microprocessing chips industry and thus almost all industries globally, since nowadays most production processes, automobiles, machines and so on are run by computers.

If China invades Taiwan, Apple Inc's stock will fall by 50 % and global stock markets leading indices could fall by 25 % in the space of several weeks.

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