Dividends and China see chance to advance interests amid division in US

President Trump for 4 years talked about turning inward and making America first. This was a change of policy since WW II when the US lead in rebuilding Europe with the Marshall Plan and during the cold war the US was considered the policeman of the world. It had the greatest military and it exercised its power all over the world. President Trump, until President elect Biden takes over and rejoins the Europe alliance, will be carrying on the inward stance.

The inward stance is not new, in the 1400’s China was on the verge of the greatest nation in the world but turned inward for 500 years. England was once the dominate country of the world at its height 2/3 of the world’s population was under the British crown. In 1947, India was given its independence and Britain has not been the same since.

The issue is always if the US turns inwards, what country is taking its place by turning outwards? Is that in the best interests of the US?

In an article by Nathan Vanderklippe of the Globe and Mail, President Xi Jinping told a gathering of diplomats in Beijing’s Great Hall of the People to adjust their thinking. He said, “Look around the world. We know we are facing unprecedented change not seen in a century.” The phrase means China is peering out on an opportunity to advance its own interests.

Linking to dividend paying stocks, when you own a consistently profitable company which can pay dividends it tends to be a leader, whether the market is monopoly or monopoly like, the President of the of company is a leader. What he or she does and does not do is a signal to the competition. If a company is not going to lead, it will be following the competition. As you examine your investments, ask yourself how does this company remain in a leadership position. If it has been a leader and you do not see it continuing, it is time to find alternatives.

There are more questions than answers, till the next time – to raising questions.

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