China Economy in Freefall. Is Trump to Blame?

China, with a population of 1.4 billion, is currently home to the world’s second-largest economy.

While China is still experiencing growth, it is not at the levels the country has grown accustomed to.

The downtrend in China’s GDP growth is a recent phenomenon that has been ongoing for the past several years, though the ongoing trade war with the Trump administration is playing a role in speeding the decline.

China’s most recent quarter was the least growth that its economy has seen since the early 1990s. The economy grew 6% last quarter when compared to a year earlier.

Financial experts polled by Reuters expected it to be closer to a figure of 6.1%.

China previously posted a 6.2% growth rate in the second quarter of this year and a 6.4% growth rate in the first quarter.

One crucial part of the economy that has seen a downturn are investments into fixed assets. Investments in fixed assets have traditionally been a marker into how well the construction industry is doing.

The construction industry is one of the main economic forces behind China’s long expanding economy.

Investment in the industrial, agricultural, and manufacturing sectors of the economy also was down.

A spokesman for the Chinese Statistics Bureau, Mao Shengyong, put a bright spin on otherwise dreary numbers: “Despite increased downward pressure on economic growth, major economic indicators remained in a reasonable range.”

Shengyong points to stable rates in unemployment and inflation as well as food and energy prices.

Even slower times ahead

Other financial experts aren’t as confident as Shengyong. They believe we will continue to see an ever-increasing weakening of the Chinese economy.

Senior China economist at Capital Economics, Julian Evans-Pritchard, has gone on record saying that “despite a stronger September, pressure on economic activity should intensify in the coming months.”

Evans-Pritchard went on to say, “Cooling global demand will continue to weigh on exports, fiscal constraints mean that infrastructure spending will wane in the near-term and the recent boom in property construction looks set to unwind.”

Bo Zhuang chief China economist at TS Lombard, also says the Chinese economy will continue to slow. Zhuang predicts the Chinese economy will only grow by 5.8% for the fourth and final quarter of the year.

The Chinese government’s growth goal for the whole of 2019 was 6.1%

Both Evans-Pritchard and Zhuang have also stated they wouldn’t be surprised if China enacted economic stimulus procedures within the near future.

Bitcoin and Gold Slaying Stocks: Why Not Own Both?

The Bitcoin vs. gold battle rages on as the two are best-performing assets of 2020. The price of gold is up 26% this year, while Bitcoin has soared 87% —

Companies Pile On Debt. Big Headaches Later for Investors?

How have companies handled the cash crunch during this pandemic? I came across an insightful in-depth research report this past week that had a few interesting charts on this. See

Potential Options Payoff in Post-Covid China Rebound

The Chinese economy is starting to show signs that it is rebounding better than other economies around the world. China was the first country that had to battle the COVID-19

Retirement Income Tip: Buy High-Yielding Dividend Stocks

Imagine a scenario where you can make money while you sleep. Sounds too good to be true, right? Enter high-yielding dividend stocks. Now, there are lots of stocks in the

Beat the S&P 500 with These Specific Stocks

Today I'm going to briefly discuss a major error that most stock market participants make on a regular basis and ways in which you can substantially increase your stock returns.

Iaccino: Dollar Down, Stocks Higher, Plus PayPal Meets Bitcoin

A renewal of federal stimulus on top of monetary stimulus after the election is likely to support the stock market, says Bob Iaccino, editor of the Stock Think Tank. The

investor or pay off debt

Invest or Pay Off Debt? In a Pandemic, I’m a Stock Buyer

If you were to tell someone that you were putting any extra cash you had into the market instead of paying off debt, they might think you have lost your

bitcoin mass adoption

Bitcoin Mass Adoption Can’t Be Far Off — That Means Surging Demand

When you look at past technological developments — from the 19th century industrial revolution through the introduction of the telephone, personal computers, Internet, and smartphones — there is a typical

stocks overvalued

Is the Stock Market Overvalued? Not By This Measure

You many have heard the term “TINA” mentioned in various financial and investment commentaries in recent months. This is an acronym for “There is No Alternative.” It is built around a

clx options

Options Play: Take Advantage of Bearish Sentiment On Clorox (CLX)

We are in the middle of a global pandemic and one of the best weapons against the virus is cleaning surfaces with bleach. If we were to ask 100 people

This Predicts Bitcoin Price — and It’s Uncannily Accurate

Many investment advisors are beginning to recommend some exposure to Bitcoin (BTC) and some alternative (alt) coins, such as Ethereum (ETH). But the biggest hurdle for many analysts is how

retail spending

Retail Spending Shoots Higher, Suggesting Stocks Will Follow

Data released today by the U.S. Department of Commerce indicate that sales at U.S. retail stores rose sharply during September. Specifically, that data indicate that U.S. retail stores rose during