Billionaire investor George Soros is expressing concern that declining household spending is having detrimental effects on the economy of China. There is no doubt that China is slowing and there is a substantial risk that things could get worse. Fortunately the government has a huge war chest of excess reserves but I’d still be careful investing in businesses that are too reliant on the Chinese economy. Examples are some of the materials companies and even some heavy equipment manufacturers.
INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.