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example, the president has announced
his desire to see a closer relationship
with China rather than the US.
Meanwhile, it is worth remembering
that China holds $1 trillion of US debt
so is not without power.Therefore, if
Washington got too aggressive, things
might rebound on them.
Howwill increases in inflation
and factors likeUS stimulus
measures impact your portfolio?
As bottom-up stock selectors with a
long-term investment horizon, we
have not followed the ‘dash for trash’
that has led some to invest in
commodities, oil and other highly
cyclical companies sinceTrump’s win.
On the other hand, attempts in the
West to curb immigration and to
restrict the number of visas will have
a direct impact on some of our
companies. Inflation, for its part, is
becoming a bit of a worry, not least
in China. Once the inflation genie is
out of the bottle, it is going to be
very hard to get it back in. However,
some of our businesses will be able
to turn this to their advantage –
supermarkets in particular, whose
pricing power can be strengthened by
rising prices.Thinking about some
specific holdings, we suspect Uni-
President Enterprises, the food
conglomerate based inTaiwan, and
Jardine Matheson’s pan-Asian retailer
Dairy Farm, could do well.
THE INVESTOR
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INTERVIEW
It is worth
remembering that
China holds $1 trillion
of US debt and is not
without power
There has been a rise of
protectionist and anti-
globalisation sentiment, and
sharply increasedpolitical
risk. Howwill this affect Asia?
Undoubtedly things are changing fast.
Protectionism, if it takes hold, could
depress world trade and growth rates.
Trade wars could develop, prompting
retaliation from the Asia-Pacific
region. In the Philippines, for
Rebecca Toh