 Good day, fellow investors. Welcome to the stock market news with a fundamental long-term twist. The most important news stock market related news for this week were of course trade wars, Trump increasing tariffs, China opening up a little bit and the Alibaba investor conference. And in light of that, we are going to put a long-term perspective on trade wars. Are they going to hurt China, the US businesses stocks? Yes, of course, because there is no winner in a trade war. How is that going to develop? How is that going to spend out over the long-term 10, 20 years? What will the world look like in 20 years? And we're going to do that by discussing Alibaba's conference. What is Alibaba doing? How is Alibaba adapting to what's going on in the world? And that's a very interesting connection between trade wars, short-term, long-term, and that's something we investors, especially if you are business-minded, business-oriented investors, so you invest in businesses, not so much in what Trump says, tweets, and the stock market going up and down. If you invest in businesses, if you know that the business will deliver your investment return over the long-term, then this is the video to watch. Let's start with tariffs, then go to Baba, then conclude with Jacksmas' views of the world and see how that fits our portfolios. Of course, Trump is very happy because the tariffs are increasing the revenue, so that is good, 4 billion in new revenue on a trillion of deficits, no worries about that. But it is an improvement and it's not going bad with Trump's tariffs, so what he is doing has to be put into a neutral objective perspective. Further, China plans broad import tax cuts as soon as October, so that's a positive China opening up and later we'll hear about how that's the key for China to develop and grow in the next phase, thus opening up, thus more opportunity. How is China also opening up and that's something that few think about. If you look at the China construction company, CCCC, they have infrastructure projects across Asia, Africa, Latin America, Europe, they are entering the European Union, building bridges in Montenegro, building bridges in Croatia now, winning bids for construction and they are slowly spreading and really building the one belt, one road, China future plan. So, investing in Africa, Latin America, Asia, Southeast Asia, in this case we are still in the southeast of Europe, slowly spreading and going forward. China is working, working, growing, growing and if whether you like it or not, they are building their future. However, on the trade war, Jack Ma warns Alibaba China to prepare for 20 year trade war. So, even if the week was positive for stocks, the long term, this will not go away in the long term. Even if some feel now, okay, things are getting better, Trump is winning, China is a little bit lessening their grip, but they will retaliate. Maybe not, maybe yes, we will see that. However, it's a long-term process and the key is that the trade environment in the world has to change and businesses have to adapt to it, to the new environment, to the changes and that's something inevitable. When you start a war, wars are easy to start difficult, very difficult to end and impossible to win. I have lived through a real war, I know nobody ends up as a winner. That's a fact. So, when you look at what Jack Ma has to say, China needs to strengthen its economy to deal with the conflict and shift trade relations from the US to regions like Southeast Asia and Africa, what they are doing with the one road, one belt. Short-term business communities in China, US, Europe will all be in trouble. This will last long. If you want a short-term solution, there is no solution. So, putting the short-term positive week into a long-term perspective, it might be that it won't end this fast. There is populism, growing populism, growing trade wars, it's going well. It might really last long and that's something we as investors also have to prepare and take advantage because we have the global trend, long-term trend, which will dig in now when we discuss Alibaba and we have the short-term and the short-term minded investors, politicians that try to benefit for the short-term, not thinking about the long, long-term. So, in that perspective, there is a long-term structural trend, globalization and now trade wars. How will it pan out? Let's dig into what Baba has to say and what they said at their investor conference to give a better perspective and then see how best to invest and how best to position yourself. First, this is an amazing chart. This is Alibaba, Taobao, Timal, El, Mi, Hema, Light, Shotong, I know I pronounced them wrongly, Tsyanyao, Yoku and Financial, Alibaba Cloud, etc., etc., an amazing ecosystem that they are building. Taobao, Timal, huge growth and much faster growth than the China retail market. So, they have first mover advantage, they're growing, they're taking advantage of their ecosystem and really growing as crazy. Omnichanneling, e-marketing, infrastructure, distribution, whatever you want, they are there. They're going global, Timal worldwide, then they're investing in Elmi, online food delivery, which is again an interesting new business in the highly populated Chinese markets. We cannot even know what will this look like in 10-15 years, but then again, Alibaba is moving first into such a thing. Hema, the pet finder of new retail, online, offline, combining store, logistics, supermarket, restaurants, expanding through China and beating everybody else in doing such a thing. So, growing fast, again, being the first in a market. Ling, Shotong, I don't know how to pronounce that. 1 million small stores already covered, giving the infrastructure that Alibaba has two small stores connecting them, something that JD wanted to do, but we don't hear news about that anymore. Probably they have been beaten by Alibaba. Yoku, entertainment, extremely fast, paying subscriber growth, a lot of projects from Alibaba pictures, music, whatever, literature, so they're really expanding their technology into everything. Tia Niao, Logistics Network, going global. So, a lot of competitors are thinking locally China, they're already thinking ahead and going global. So, global smart logistics infrastructure. Alibaba is really thinking long term, they will be heard by the trade war, but they are preparing for what will the world look like in 10-20 years. Trade war, yes or not. Mobile internet, internet of things, big data, traffic, everything that we hear about 5G, what will 5G bring, again, they are there and they are preparing. Tim Hall, Genie, 4 cars, so a data voice recognition center, again, something that is being implemented that you hear at other parts of the world as just an idea. We don't even need to talk about end financial, credits, payment system, blockchain, artificial intelligence, internet of things, whatever, incredible how they are growing, their customers, 640 million, now bigger and bigger customer base, their customers use more and more global pay increasing, covering already half of the world. Cloud, Alibaba leading company in cloud establishment globally, they're investing 15 billion in artificial intelligence to become the global leader or to make it easy to do business anywhere in this digital era and they have their nice ecosystem to do that. Their growth engine, more consumption, as China is transitioning, as China will grow its domestic consumption, as more and more people will enter the middle class in China, that's one part of the growth, but then the second part is, of course, globalization from China to the world and from the world to the local. So, that's an integration that few think about, yes, China exporting, but China is importing and will import more and more. Of course, global delivery, they're investing in a lot of things across the world and they have the 15 billion of free cash flows to invest into such things, which is something that gives them leverage, money, and they have the capability to do so. The key also, as I said, middle class, growing middle class, spending more and more after a few years on the platform, they are spending from 3,000, remaining B to 12,000 after five years and making from 27 to 132 orders over their platforms. If they can get that first move advantage, this is what the world will look like even in our western world, but we haven't yet seen the platform so aggressive as it is in Alibaba. The goal is to reach, I think, 2 billion customers in 20 years. They have an extremely high retention rate, strong core, when you have everything, then it goes like that. So, this is the ecosystem, this is what the world will look like in the next few years, in the next few decades. I've listened to the Jack Ma talk from the investor conference. It's extremely interesting. I advise you to listen. It starts at 1.55 from the webcast and the points are that globalization is here, whether we like it or not, we can't stop the people. And here I extremely agree. You can't stop globalization. Even my book, if I would have thought 10 years ago that I will be selling something in China, I would have considered myself crazy. Now my book will be translated into Chinese and something of mine will be sold into China. So I will have revenues from China. So that's something crazy. That's something that was unbelievable to many of us 10, 20 years ago. And I cannot even imagine what will the world look like in 10, 20 years. The globalization is here. And that trend, how things move fast in this environment is something to always keep in mind when we invest. However, will the trade war hurt? Yes. Okay, how to prepare for that? Okay, what will we do if stocks fall 50%, what do you do? That's something that you have to find your answer to and then you're ready for everything when you know how to position yourself. So we have a strong long-term global growth trend that I think it's structural. Nobody can stop it because nobody could stop the cryptocurrencies exploding. Everybody can buy them. Everybody can do everything online today. And if you build an ecosystem around that, you might do very, very well. I have been really positively affected by the Baba Investors Day and what I have listened. So the bullish thesis seems smart, long-term investor, long-term exposure to China and emerging markets across Baba seems rational. However, I even made a video about Alibaba fraud and I will dig deeper into the bear thesis and then compare that to see whether it is a buy after all, if those promises are based on sound fundamentals, whether it has the potential, whether it is all a fraud and that's something I have to dig deeper in. However, for now, I'm positive. I'm looking at the complete Chinese market. Alibaba looks good, but there are a lot of question marks that I still have to answer to see, okay, is it real? Is it not real? Are they over-promising and will they over-deliver in light of what's going on and what's the risk reward? How hard will they be hit from the trade wars as Jack Ma is saying that they will be hit? So to conclude, trade wars, short-term, long-term, if you are an investor, focus on the businesses, find the best businesses, find the best businesses that will grow in this Internet of Things era, digitalization, globalization, and then you have nothing to worry about whatever happens in the stock market. If stock markets go down, if stock markets crash, that increases your long term return. That's the key. This is just the start. We'll dig deeper into Alibaba portfolio positioning risks, rewards, hedges, because that's something we have to think about, but we must not be afraid of taking action, preparing and investing for reaching highest possible returns. Thank you for watching. I'll see you tomorrow. We'll discuss a little bit about investment mindset, and then on Sunday, we'll discuss the Chinese online streaming industry with YY, Huya, Momo, YBO that I have analyzed, put into a model, and we'll see how that fits the perspective. Thank you for watching. 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