chinese economy

Global Economy: Why It Will Get Worse Before It Gets Better

By Friday, August 28, 2015
Global EconomyChina is in deep trouble. Economic activity in the second-biggest economy is plunging and it looks like the situation is only going to get worse. The Caixin Flash China General Manufacturing Purchasing Mangers’ Index (PMI), an indicator of manufacturing activity, now stands at 47.8—the lowest level in more than six years. (Source: Markit Economics, August 21, 2015.) A PMI below 50 means contraction in the manufacturing sector. This year, the .

Exchange Traded Funds: 2 ETFs to Profit from China’s Economic Growth

By Friday, August 28, 2015
Exchange Traded FundIn a country where the annual gross domestic product (GDP) growth rate could be eight percent, its stock market should be a good place to invest, right? Well, according to the portfolio strategy research team at The Goldman Sachs Group, Inc. (NYSE:GS), China’s economic growth will come back in the final quarter of this year. Moreover, the country’s growth rate is expected to accelerate to an annualized rate of eight .

Economic Collapse: Billionaire Jim Chanos Has a Dire Warning for Chinese Investors

By Monday, August 24, 2015
Jim Chanos Shares Dire WarningConcerns over the Chinese stock market have accelerated a massive sell-off in the global equity markets. Despite the growing fear, short seller Jim Chanos thinks that investors may still underestimate the stock market collapse in the world’s second-largest economy. During an interview on CNBC’s Fast Money: Halftime Report, Chanos of Kynikos Associates described the latest crash in the Chinese stock market as worse than it appears. (Source: CNBC, August 24, .

Stock Market Crash: China Could Spark an Economic Collapse in 2016

By Friday, August 21, 2015
China Stock Market CrashAfter a colossal stock market crash in June, many analysts are worrying that China is on the brink of an economic collapse. Panic is setting in as the country experiences a dramatic slowdown in exports and growth. A recession in China would precipitate crises across the world, drawing an eerie parallel to the U.S.-led contraction during the last decade. After markets collapsed in 2008, we often heard the phrase, “the .

Oil Price Forecast: Citigroup Says Oil Prices Could Crash Another 20%

By Thursday, August 20, 2015
Oil-Price-ForecastOil prices could come under serious pressure towards the end of the year if a recent bounce back in prices holds for the next few months, potentially falling as low as $32.00 per barrel. At least, that’s the opinion of Citigroup energyanalyst Seth Kleinman. On Wednesday, West Texas Intermediate (WTI) dropped by more than 4.8% a barrel on the New York Mercantile Exchange. The commodity closed the trading session .

Ron Paul: Federal Reserve Won’t Hike This Year

By Monday, August 17, 2015
Ron Paul on Interest RateGage Skidmore / Flickr
The global economy is so fragile that the Federal Reserve may not be able to raise interest rates later this year as many economists expect. At least, that’s according to former U.S. Congressman and three-time Republican presidential candidate Ron Paul. “She’s under the gun,” Paul told CNBC’s Futures Now last week. “I could be wrong, but I don’t think they are going to raise interest rates.”
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Marc Faber Says China’s Yuan Devaluation is “Meaningless”

By Monday, August 17, 2015
Marc FaberThe Chinese economy is in a recession and could be on the verge of an economic collapse in spite of the cheerleading from authorities. At least, that’s the opinion of renowned market analyst Marc Faber. “Have you ever seen a government that doesn’t lie? I haven’t,” the editor and publisher of the Gloom, Doom, & Boom Report said during a discussion on the latest move by the Chinese central bank .

Marc Faber: U.S. Recession is Coming

By Friday, August 14, 2015
Marc FaberImage by Simon Cunningham
The Chinese economy is nowhere near growing at the rates government officials are claiming. That could result in a global stock market crash and even a recession for the U.S. economy. At least, that’s according to renowned financial commentator Marc Faber. During an interview on Fox Business Network’s Risk & Reward, the publisher of The Gloom, Boom & Doom Report discussed the upcoming recession. (Source: 
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Jim Rickards: China’s Stock Market Crash Isn’t Over Yet

By Friday, August 14, 2015
China Stock Market CrashFinancial turmoil in China could ignite a stock market crash and possible economic collapse in 2015. At least, that’s the opinion of famed analyst Jim Rickards.   “My point is, the worst is not over in China,” the editor of Strategic Intelligence, wrote in an article about the ongoing crisis in the Chinese stock market. “The market won’t come rallying back, either. That’s not how bubbles work.” (Source: The Daily .

China Economy: Soft Data Renews Expectations for Quantitative Easing

By Monday, August 10, 2015
Chinese Economy Slowing According to Soft DataThe month of July does not look good for China’s economy. Trade balance continued to deteriorate, while producer prices just hit the lowest level since late 2009. All this came in just after the 30% crash in China’s stock market. Trade Balance: Both Exports and Imports Plunged In the month of July, China exported 1.19 trillion yuan ($190 billion) worth of goods and services—a massive 8.9% decline year-over-year. Imports fell .
Sep. 1, 2015
Trailing 12-month EPS for Dow Jones companies (Most Recent Quarter) $1014.15
Trailing 12-month Price/earnings multiple (Most Recent Quarter)

17.44

Dow Jones Industrial Average Dividend Yield 2.71%
10-year U.S. Treasury Yield 2.14%

Immediate term outlook:
The bear market rally in stocks that started in March 2009, extended because of unprecedented central bank money printing, is coming to an end. Gold bullion is up $1,000 an ounce since we first recommended it in 2002 and we are still bullish on the physical metal.

Short-to-medium term outlook:
World economies are entering their slowest growth period since 2009. The Chinese economy grew last year at its slowest pace in 24 years. Japan is in recession. The eurozone is in depression. With almost half the S&P 500 companies deriving revenue outside the U.S., slower world economic growth will negatively impact revenue and earnings growth of American companies. Domestically, America’s gross domestic product grew by only a meager 2.3% in the second quarter, which will negatively impact an already overpriced equity market.

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From: Michael Lombardi, MBA
Subject: Gold: The Stock Contrarian Investors’ Best Play of the Decade

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