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Will Hard Landing Concerns For China Return?

  • Written by Syndicated Publisher No Comments Comments
    January 24, 2014

    We had all probably forgotten about the concerns a couple of years ago that the world’s second largest economy, China, might be in for a hard landing into a recession.

    The talk faded away as its economy stabilized. However, its stock market remained a disbeliever.

    Having recovered only 50% of its loss from the 2008 global financial meltdown, China’s stock market immediately headed back down in 2009 and its decline since has it down 66% from its 2007 peak, and down 41% from its partial recovery high in 2010.

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    And here we have last night’s report that China’s manufacturing activity as measured by the HSBC/Markit PMI Index fell from 50.5 to 49.6 in January, into the contraction zone beneath 50.

    Within the report, overall new orders swung into decline, while export orders, already in contraction, showed an increased rate of decline.

    The report spooked Asian markets some, the Asia Dow closing down 1.1% last night.

    Fortunately, markets in the world’s largest, third largest, and fourth largest economies, the U.S., Japan, and Germany, which tend to lead recessions by 5 or 6 months, are showing no signs of doing so.

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    A big thank-you to:

    Subscriber Dan J. for his message yesterday regarding his tracking work: “I’ve charted the performance of STS versus 6 other newsletter portfolios (both aggressive and balanced) for the past 15 years, and not only is STS at the top, it does so very smoothly.”

    To read my weekend newspaper column click here:  I Sure Hope It Was The Weather’s Fault

    Subscribers to Street Smart Report:

    In addition to the charts and signals in the ‘premium content’ area of this blog, an in-depth Mid-Week Markets report on the stock market, gold, and bonds, from last evening is in your secure area of the Street Smart Report website.

    Images: Flickr (licence attribution)

    About The Author – Sy Harding, Street Smart Report

    Sy Harding publishes the financial website Street Smart Report Online and a free daily Internet blog at Sy’s Free Blog. In 1999 he authored Riding The Bear – How To Prosper In the Coming Bear Market. His latest book is Beat the Market the Easy Way! – Proven Seasonal Strategies Double Market’s Performance!

    It includes our research and analysis on the economy and markets, and provides charts and buy and sell signals on the major market indexes, sectors, bonds, gold, individual stocks and etf’s, including short-sales and ‘inverse’ etf’s.

    It provides two model portfolios as guides. One is based on ourSeasonal Timing Strategy, one on our Market-Timing Strategy.

    In depth updates are provided every Wednesday, with interim ‘hotline’ updates every time we make a trade. An 8-page traditional newsletter Street Smart Report is provided on the website every 3 weeks, in pdf format for viewing or printing out.

    There is the Street Smart School of online technical analysis ‘seminars’,commentaries to keep you ‘street smart’ about Wall Street, and much more. 

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