The New Cold War, And Its Economic Consequences

Jun. 11, 2023 2:00 PM ETARCC, HR300 Comments

Summary

  • There is increasing evidence of a long-term face-off between the U.S. and its allies, and China and Russia – together with a collection of sympathetic countries.
  • We've gone through a Cold War before and have some experience with it.
  • This time will be different in a number of ways that investors should focus on.
  • If it occurs, it will most likely result in slower growth, higher inflationary pressures, and a reduced marketplace for goods and services.
  • We may see the emergence of "currency zones," which could lead to complex financial issues.
  • This idea was discussed in more depth with members of my private investing community, High Dividend Opportunities. Learn More »

People walking in line across world map, painted on asphalt, front person walking left

Klaus Vedfelt/DigitalVision via Getty Images

Co-authored with Philip Mause.

The New Cold War, And Its Economic Consequences

Increased tensions growing out of the war in Ukraine, stress over Chinese claims to Taiwan, and other issues have begun to hint at the

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This article was written by

122.64K Followers

Rida Morwa is a former investment and commercial Banker, with over 35 years of experience. He has been advising individual and institutional clients on high-yield investment strategies since 1991.

Rida Morwa leads the Investing Group High Dividend Opportunities where he teams up with some of Seeking Alpha's top income investing analysts. The service focuses on sustainable income through a variety of high yield investments with a targeted safe +9% yield.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of ARCC, HR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Treading Softly, Beyond Saving, PendragonY, Hidden Opportunities, and Philip Mause all are supporting contributors for High Dividend Opportunities.

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