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.
- The narrative of slowing manufacturing data continues each month in China. (WSJ)
- Why China stocks are still dead money. (The Slant)
- Credit Suisse said that China’s GDP growth could start with the number 6 when all is said and done. (MarketWatch)
Jeff Reeves is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” Write him at firstname.lastname@example.org or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.