The attention between the two big powers, the US and China, has grown over the years and the world has become ever more divisive as a result. Not only that, we witnessed a decoupling in their economies and financial markets. The US stock market has done very well in the past 13 years while Asian stocks struggled to keep up. China had a bad 2021 as many companies were put under the regulatory microscope. US continued to do well in 2021 with S&P 500 returning over 20%. But, this year started bad for the US. NASDAQ has gone down 11% while S&P 500 is down 7%. In contrast MSCI China is up 3%.

There is a sudden change in the US monetary policy.

US has inflated the markets with lots of liquidity after 13 years of money printing and this is ending. Liquidity is withdrawing and investors are reacting to the change in tide in advance, creating a selldown....