I am pretty sure much of your portfolio is in the red right now (mine is redder than ang pao), but if it’s at least some consolation, you probably outperformed Cathie Woods! Year to date, the S&P 500, Nasdaq, and Dow Jones Industrial Average have fallen by 14%, 22%, and 11% respectively. But you must be asking… what is causing all this market mayhem? Are we really truly staring down the tube of an economic abyss? Before we start making future guesses, let us first throw some colour on the current events.

China’s zero-COVID policy

Most if not all major economies have lifted their COVID-19 restrictions. Unfortunately, the world’s factory, aka China, is still pursuing its zero-Covid policy much to the chagrin of the huge manufacturing sector and in the process strangling the global supply chain. The problem is that China literally makes almost everything. Now when China sneezes the...