US-China trade war: Beijing has three options

BY the end of this month, some US$50 billion worth of Chinese goods ranging from home appliances and electronic products to auto parts and more will have become subject to US trade tariffs. Clients regularly seek our views on the potential impact of this escalating dispute.

Political tea leaves are difficult to read, and we would not profess to know how to, but being a long-term investor helps us to avoid having to predict what the next policy move will be.

We keep abreast of developments and what these might mean for our holdings. We get a feel for how an economy is doing through the companies we invest in. Some of them are just now announcing first-half results, which will give us a fresh chance to assess their state of health.