5 Reasons You Shouldn’t Worry About a Market Crash

While market crashes are inevitable, the bears' cries about near-term pain are off the mark

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5 Reasons You Shouldn’t Worry About a Market Crash

Market Crash Claim #5: Slowing Chinese Economy

ChinaPromo 5 Reasons You Shouldn't Worry About a Market CrashChina has been a main driver of the global economy for the better part of a decade. Insatiable appetite for everything from copper wire to wheat drove up prices and profitability for a wide range of industries, especially those tied to commodities.

But now China is purposely trying to cool off, moving away from investment to consumption. The country is targeting GDP growth of 7.5% this year, far below mid-decade rates of 12% and higher.

However, it’s hardly a slam-dunk that even a hard landing would cause a crash. Commodity prices have been on a downtrend for years and the market is at record highs. Much of the market doesn’t depend on demand from China, and a recovering Europe is taking up some of the slack.

A slower China is a serious headwind for stocks, but not an automatic disaster.

As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/2014/03/market-crash/.

©2014 InvestorPlace Media, LLC

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