By: Yale Bock
In May, the United States and China met in China to discuss a wide variety of issues. One obvious topic is China’s exposure to the Strait of Hormuz and how much energy it imports from the region. China has a strategic interest in maintaining good diplomatic relations with all global countries that export oil and gas. With China dependent on others for the sourcing of feedstock, it is vulnerable to any disruptions in supply. Hence, the move is to protect its teapot refiners and find ways to increase non-carbon-based transportation vehicles.
With respect to the ongoing discussions and back and forth between the United States and Iran, the endless negotiation leaves the financial world vacillating between believing a deal is imminent versus a world where kinetic activity is the only way this conflict can end. My own feeling is Mr. Trump was deeply affected by the downed airplane and potential capture of US airmen earlier in the year. His dramatic shift of giving the Iranian regime an endless number of chances to have common sense, only to be disappointed with the scorpion being a scorpion, makes it hard to believe he won’t eventually find a way to get to a deal. I hate to say this is the case, but how could anyone believe differently?
India is a massive market and has been a strong performer for many years. However, the artificial intelligence wave leaves much destruction in its wake, and the Indian market is one of the victims. Foreign investors have longingly turned towards anything related to semiconductors and memory, so South Korea, Taiwan, and Hong Kong all offer companies that are heavily involved with artificial intelligence fundamentals and infrastructure. Valuation and liquidity are also concerns with the India market. Curious investors certainly should pay attention to what is going on there.
Originally posted on Jun 1, 2026 on Y H & C Investments newsletter
PHOTO CREDIT: https://www.shutterstock.com/g/Dolores+Giraldez+Alonso
VIA SHUTTERSTOCK
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