Greatest market risks in 2026: China and Taiwan tensions

David Nelson outlines his primary market risk for 2026: geopolitical tensions with China, particularly concerning Taiwan. He characterizes China as an adversary both geopolitically and militarily. While efforts are being made to onshore mission-critical supply chains, he warns that this will take years to achieve success. He highlights military advisors' predictions of potential Chinese action against Taiwan by 2027 and questions the impact if such an event were to occur sooner, noting it would decimate the semiconductor industry and likely lead to military intervention.