The Dutch Investors #42 | Investing in Asian equities and markets | Interview w/ The Asia Economist
Jun 26, 2025
Michael Spencer, founder of Temple Street Advisors and author of The Asia Economist, brings 25+ years in Singapore and deep experience as an Asia economist. Conversation covers geopolitical realignment and supply‑chain decoupling. He discusses demographic tailwinds in India and China, information asymmetry for foreign investors, sector vs country allocation, and practical ways to gain an edge in Asian markets.
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Front Row Seat In The 1997 Asian Crisis
- Michael Spencer described arriving in Hong Kong during the 1997 Asian financial crisis and diagnosing collapsed banking systems and foreign-currency liabilities.
- He explained how deep devaluations made exporters competitive again and economies were booming by 1999, illustrating crisis -> rapid rebound dynamics.
Asia Trade Is Mostly Intermediate Goods
- Asian export-led development often means countries produce intermediate goods, not final consumer products, so trade is a multi-step cross-border process.
- Trump-era policy aims to exclude China from US supply chains, forcing countries like Vietnam or Thailand to choose markets and potentially upend their development model.
Security Logic Behind Decoupling From China
- US security concerns led to broad attempts to remove Chinese suppliers from defense and tech supply chains, not just isolated firms like Huawei.
- That logic pushes for an expensive US-centric tech stack and risks isolating the US if others continue free trade with China.