A new meaning to “Made In China”
There is a new meaning to the expression “Made in China” as we see the impact of the Chinese stock market. Last week the Dow and the S&P 500 ending down 6% the worst ever for the Dow and for the S&P since 1927.[bctt tweet=”Last week the Dow and the S&P 500 ending down 6% the worst since 1927″] That’s the worst start for the Dow ever, and the worst for the S&P 500 since 1927. China halted their trading twice last week and oil continued to plummet. The good news was the jobs report which beat expectations.
This week’s market outlook
China has started off on the wrong foot today but US markets are looking strong. Earnings are kicking off this week and while expectations are low, we are looking for some surprises. This week could help us put last week in the past.
Opportunities from China
China could actually create opportunity and impact us positively. China’s circuit breaker that stopped all trading last week created panic selling when trading resumed. China then removed the breaker. The largest cause of China’s volatility came from the restrictions they put on large investors back in August. Smaller investors began to sell back into the markets trying to beat the large investors who’s restrictions were to be lifted this month. Those restrictions have now been extended. We believe this will push money from China into the US, strengthen our economy, and create opportunities.
Quality and quantity
Consumer confidence is up because of the job growth numbers and the housing market doing well. It was a quality as well as a quantity increase. This is the second year in a row we have had this kind of growth. We are watching for the consumer to go back into action and the kind of opportunities that can create for our clients.
[contact-form-7 id=”8119″ title=”Portfolio Team Blog Comment Form 2015″]