In The Wall Street Journal article, the author argues that China is betting it can win a trade war with the US because the American stock market is the country's Achilles Heel: https://lnkd.in/dkaCjdSS
The above graph from Goldman Sachs shows why.
US households directly own 40% of the US stock market, let alone indirectly through retirement and mutual funds. This is massive.
This is the biggest threat to the US political system, the social fabric, and everything in between because of this ownership.
It is all great when we celebrate the stock market bubble and Mag7, but this has a downside, if not calculated properly. Overvaluations are a stock market weakness and nobody can deny that.
Weaknesses have to be identified and recognized, and this is the first step towards planning for trade wars.