Issue 23: Safeharbour

3 April 2025

After Trump’s Liberation Day it feels as though there are few places for investors to hide and weather the tariff storm. For equity investors though it is also an opportunity to buy into markets and stocks with strong underlying business cycle and balance sheet fundamentals. Taiwan stands out, despite facing a 34% reciprocal tariff rate imposed by Trump. The economy is firing on all cylinders:  domestic demand is rising strongly and so are exports.  As the world’s chip foundry Taiwan Inc benefits disproportionately from the surge in AI driven global demand. Furthermore, Taiwan Inc.'s expansion of investment and production in the US serves as a hedge against potential risks to corporate earnings growth.