Strive Asset Management’s co-founder and president Anson Frericks called China “one of the most underappreciated risks within asset management.”
Frericks said at Exchange 2023 that investors should think “much more” about the risks associated with the country. He cited such headwinds as “China’s floating military balloons over the U.S,” and “Xi Jinping taking an unprecedented third term as the premier of China.”
To address the real concerns of balloons, Frericks recommended the (STXE ). STXE seeks exposure to large- and mid-cap equity securities across 24 emerging market economies, excluding China.
“If you have… emerging markets exposure, you might just want to consider removing China from that,” he said. “It would actually probably make it a better portfolio play right now.”
Frericks added: “A lot of investors last year lost a lot of money when Russia invaded Ukraine. That exact same thing could happen if China ratchets up pressure on Taiwan.”
Strive was launched last year to push back against so-called stakeholder capitalism. The firm includes PayPal co-founder Peter Thiel among its early investors.
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