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China News Is Scary, Add In Ukraine And The Fed: Major Trouble



March 10, 2014 – Comments (1)

Over the weekend, China reported an 18.1% drop in exports year-over-year. In addition, they saw an 18% drop in crude oil imports, month over month. Considering the Chinese government fakes their economic numbers more than the United States does, this is absolutely shocking. That type of slow down is epic and considering China is the second biggest economy in the world, it spells major trouble for all countries. If you add into the mix the fact that it is extremely likely Crimea will be part of Russia within a week and sanctions/stress will mount because of it, it amazes me the markets have not seen more selling today. Lastly, add in the fact that the most recent Non Farm Payrolls report came in better than expected at 175,000, any chance of the Federal Reserve not tapering another $10 billion just went out the window.

Gareth Soloway

1 Comments – Post Your Own

#1) On March 10, 2014 at 7:18 PM, awallejr (37.00) wrote:

1.  I really don't care about China.  Most of my investments are in the US, with a few Internationls like GE, SDRL and XRX.  I get tired of reading how important China is.  It isn't.  The US is.  I am sure their exports are down.  Many companies built up too high inventory for the Christmas season that didn't materialze and now they are working them off.  And the weather hasn't helped any.

2.  I think the markets realize how this will turn out regarding the Ukraine.  The Crimea goes to Russia.  And Ukraine moves to Europe.  The Crimea was just given to Ukraine by Kruschev anyway, not even thinking there would be a collapse. I think the US would be upset if Panama opened their doors to Russia and allowed bases.

3.  I think the market WANTS QE to end.  So keep giving me better and better employment numbers.

Sorry Gareth maybe you are a scaredy cat but I don't see anything that you have written here scary at all.

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