CHINESE JETS FLY CLOSE TO TAIWAN – BE CAREFUL ABOUT THE TAIL RISK
By Nigam Arora & Dr. Natasha Arora
To gain an edge, this is what you need to know today.
Tail Risk
Please click here for a chart of Taiwan ETF (EWT).
Note the following:
- Ahead of Pelosi’s visit to Taiwan, Chinese jets have flown close to Taiwan. Pelosi will be on a military plane escorted by US fighter jets.
- China has threatened to shoot down Pelosi’s plane and take other military actions.
- In The Arora Report analysis, there is a medium risk of confrontation, but there is a low risk of escalation. The reason is that there is no significant increase in Chinese navy build up near Taiwan.
August 2, 2022