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Investors May Not Realize They Have Risky Exposure to China

Back in May, I penned a column for MarketWatch about how a slowing China economy would hit the auto, commodities and consumer sectors the hardest.

On Thursday, I visited Fox Business Network to update folks on the situation and look at three specific stocks that could run into trouble amid the continued downturn in China – Ford (F), BHP Billiton (BHP) and Yum! Brands (YUM).

The gist is essentially this: Those banking on a China growth miracle need to be realistic about demand amid soft trade and manufacturing data there, and the fact that a 6% or 7% growth rate alone isn’t enough when expectations have been for much more impressive expansion and spending.

Take a look or a listen via the above clip.

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Jeff Reeves is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.

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