Pelosi Slams This 3/10 Portfolio for Ignoring American Semiconductors

When Paul and I sit down in the evenings to review our portfolio, we do so with a profound, unshakeable faith in the American economy. So, you must understand my polite bewilderment as I reviewed your holdings. I had to adjust my spectacles and sip my water quite carefully. It appears you have constructed an entire portfolio predicated on the explicit assumption that American innovation has simply ceased to exist.

You have curated what I can only describe as a United Nations General Assembly of equities. It is a fascinating academic exercise, certainly. But in my decades of public service and diligent, proprietary research, I have learned one incontrovertible truth: betting against American economic dominance is a spectacularly unprofitable endeavor. You have brought a passport to a policy fight, and while I commend your global curiosity, I must respectfully inform you that this portfolio would never make it out of committee.

Let us examine the architecture of your capital. You have deployed 29.5% of your assets into Technology, which is a sector rotation I fundamentally respect. However, your geographic exposure is entirely foreign—80.9% in Emerging Markets and 15.8% in the Asia-Pacific region. You are holding significant positions in Tencent, MercadoLibre, and Alibaba, while deliberately ignoring the most transformative wealth-creation engine in the history of capitalism: the United States technology sector.

Furthermore, I note your cash reserves sit at a meager 3.3%. Modest cash is acceptable, but such a razor-thin margin leaves you with absolutely no strategic dry powder. When the right opportunity presents itself—and with a careful reading of public policy, it always does—you must be ready to act decisively. At 3.3%, you have stripped yourself of the flexibility required to capitalize on market dislocations.

I do applaud your willingness to take meaningful position sizes—your 15.6% allocation to your primary emerging markets index shows a commendable level of conviction. I simply happen to believe your conviction is directed at the wrong hemisphere.

While I always appreciate a diverse array of opinions, several of your strategic decisions are fundamentally incompatible with prudent wealth generation.

🚩 Total Absence of American Semiconductors: You have exactly zero exposure to the domestic semiconductor complex. NVIDIA, Broadcom, and the artificial intelligence infrastructure are the foundation of modern economic leadership. A portfolio without any exposure to American silicon at this point has simply not been paying attention to the fundamentals.

🚩 Ignoring Domestic Policy Tailwinds: By anchoring 16% of your portfolio in foreign energy like Saudi Aramco and Vale, you are completely ignoring the massive legislative catalysts occurring stateside. The CHIPS Act, the infrastructure bills, the investments in clean energy—these provide immense public policy tailwinds. An investor who ignores the domestic policy environment is flying blind.

🚩 Duplicative Indexing: Holding both the iShares MSCI Emerging Markets ETF (15.6%) and the Vanguard FTSE Emerging Markets ETF (10.2%) is entirely redundant. This is not diversification; this is bureaucratic duplication. We do not need two identical committees doing the exact same work.

🚩 Opaque Regulatory Jurisdictions: You have heavily allocated into Chinese equities like BYD, PDD Holdings, and Alibaba. I prefer my technology giants to be regulated by congressional committees I can actually monitor, not unpredictable foreign regimes.

🚩 Lack of Downside Protection: I see no structured positions, no options, and no risk management beyond "just holding." Sophisticated investors use all available instruments to protect their capital.

I give this portfolio a 3 out of 10. You have conviction and you understand sector concentration, but your absolute avoidance of American markets is a historic unforced error.

To bring this portfolio back into order, I recommend the following actionable steps:

1. Liquidate the redundant Vanguard ETF (VWO) and use that 10.2% to establish a beachhead in American semiconductors.

2. Trim your speculative Chinese ADRs (Alibaba, PDD) and redirect those funds into domestic cybersecurity or cloud infrastructure, where policy tailwinds are structurally secure.

3. Build your cash reserves closer to 10%. You need liquidity to participate when the market offers a discount on exceptional American companies.

As I always say, uncertainty is not a reason to do nothing—it is a reason to do the right thing. And history has proven, time and time again, that the right thing is to never bet against the United States of America. I yield back the balance of my time.