| Dear Reader, To sum up Friday’s Virtual Strategic Investment Conference, I’d call it the “China and Fourth Turning day.” We heard from several China experts who all made thought-provoking points. Jonathan Ward, author of the book, China’s Vision of Victory, and founder of the Atlas Organization, didn’t leave any doubt that China plans to become the dominant force in the world: “China’s ambitions are not regional—they’re for the entire planet.” He said India could become a valuable American ally in Asia since its values are aligned with those of the United States. His views were seconded by Gavekal Senior Asia Analyst Tom Miller. Tom said that even though right now India’s economic growth “looks abysmal,” investors should keep an eye on India as the next great manufacturing location for the West. Reasons for optimism: a huge labor force and lower-cost labor than in China. China insider and finance professor Michael Pettis predicted that “we’re entering a period where the globalization process will be reversed” and that the problems between the US, Europe, and China won’t be resolved anytime soon. Global macro strategist and policy expert René Aninao named four vital sectors that will be most affected by the rising protectionism—tech, telecom, auto, and energy. Mark Yusko, CEO and CIO of Morgan Creek Capital Management, said he’s “wildly, enthusiastically bullish on China.” As the country is transforming into a consumer economy, he believes that both Chinese consumer and healthcare stocks will see a huge boom. We also saw a fascinating presentation by Karen Harris, managing director of Bain & Company’s Macro Trends Group. Karen excels at finding the connection between trends and demographics, technology, and geopolitics—and then predicting how these factors impact businesses and markets. She talked about four major trends that have been in motion for years and are now being accelerated by the COVID crisis. She also thinks that in the next decade, interest rates might actually go up. Sign up for your Virtual SIC 2020 Pass and find out why. Jared Dillian, editor of five wildly popular research letters and host of a radio show on personal finance, talked shop on bonds and portfolio allocation. As a former Wall Street trader, Jared is an ace at analyzing trends and investor sentiment. Right now, he recommends shifting from the usual 35/65 allocation of stocks and bonds to a 20/20/20/20/20 spread—bonds, stocks, gold, real estate, cash—to play it safe. He also mentioned a fool-proof strategy to get a reliable 6% yield. Finally, one of my personal favorites of the day was historian, generational researcher, and demographer Neil Howe with his take on the Fourth Turning, which is also the title of his prophetic bestseller published in the 1990s. John Mauldin, who is a huge fan, asked Neil whether we’ll see a major war (which has been part of every Crisis turning in US history). Neil said we might, but reminded John that periods of extreme strife also give rise to the innovations that for centuries have ignited technological advancement. The Great Depression, for example, ended the American servant class and put appliances like refrigerators in every household. Neil predicted that once the Boomers have evacuated key positions, Gen-X and Millennial leaders will make some tough decisions regarding the $80–140 trillion of unfunded liabilities. He also discussed what it will take to successfully navigate the 2020s and what the European and Chinese Crisis turning look like. You should really see this for yourself. I hope you’ll get your Virtual SIC 2020 Pass today and join us for the live action on our two final conference days on Tuesday, May 19, and Thursday, May 21. Remember, you’re not missing any part of the conference. What you can’t watch live is already on video to watch at your leisure. Transcripts are being prepared as we speak. For just a few more days, you can still save 50% if you get your Pass now. By midnight of June 4, it will revert back to the full retail price. Sincerely, 
Ed D'Agostino
Publisher
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