China has received a significant amount of negative press of late. ATM believe it is important to remain focused on the facts and take a balanced approach to investing. Below we outline in bullet point form key points that investors should bear in mind when making decisions in such volatile markets.
The positives
Equity market moves in context aren’t that bad – They have only retraced back to levels seen last year
Mainly only Chinese retail investors effected – global wealth not tied to China stock market
We were already aware that China was slowing- No surprise/shock
China is taking measures to address their slow down
They have ample resources at their disposal to counter weakening growth
The government remains committed to support the economy at any cost
There is a transition away from manufacturing to a consumer driven economy – this process will lead to further economic growth
The US economy, the world’s largest economy, con...
Stock Markets, Simplified.