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Economy-Security Investment Strategy

Since the Cold War, We have seen the highest levels of fragmentation-Economic, Industrial and National Security.

We need to have a clear understanding of the concept of Economy-Security.

The Protectionist Policies of the US administration, such as the IRA Act, the Chip4(Fabrication4; United States, South Korea, Japan, Taiwan) Alliance, and the Semiconductor Science Act, are examples of the Economy-Security Era.

Be applying the concept of Economy-Security to our Investment strategy, We can examine ways to increase the profitability of our investments.

In this blog, We will introduce an Investment Portfolio optimized for the Era of Economy-Security through US Stocks, ETFs and more.

Of course, complete compartmentalization like that of the Cold War will never be possible. Not De-Coupling. However, De-Risking should be possible.

Economies with high external dependence, such as the US, EU and South Korea are now designing De-Risking strategy for stable Supply Chain.

Stabilizing the Supply Chain has taken precedence over Economic interests. In other words, Security has trumped economics.

Which Sectors fit into an Economy-Security Investment Strategy?

  1. Semiconductor

  2. EV/Battery

  3. Healthcare

  4. Aerospace & Defense

Along with the 4 Sectors above, the 4 Sectors may include companies involved in commodities that are essential to the sector.

All 4 of these Sectors can be strategic Industries for a Economic growth and have been highlighted as key industries in the US-China rivalry.

The following ETFs are suitable for this strategy.

SOXX ETF, LIT ETF, XBI ETF, ITA ETF and so on. In some cases, We may be able to choose a similar ETF.

Stocks and ETFs that are appropriate for an Economy-Security Investment Strategy should be limited to no more than 20% and no less than 50% of Total Asset Investments.

We will design and present Investment Strategies without compromising our Investment philosophy of Global Asset Allocation.

This Blog will present various solutions for successful Investing.

We will present a ETF Portfolio that is suitable for Long-term Investing while adhering to the principles of Global Asset Allocation.

Create a Portfolio suitable for investing in a US 401K, Canada TFSA, RRSP.

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