If China offers a greater level of transparency, the Fed could be more comfortable not only raising rates but at a much quicker pace. That could potentially spell good news for JP Morgan and Wells Fargo, two industry stalwarts that encountered some problems in the wake of the financial crisis (like nearly all banks) but which nonetheless remain attractive at current valuations.
It was only a matter of time before China’s rapidly expanding economy would begin to level out. It appears that time is now. It’s almost certainly not growing at a 7-percent clip. Most concede that.
Meanwhile, because China wanted a consumption-based economy, along with a mom and pop investor class, it’s time to deal with the ramifications, which include pulling up the curtain and allowing the rest of the world to know what is really going on. It’s become too big, too important and too interconnected not to.
Steven Dudash is President of IHT Wealth Management, a Chicago-based firm with approximately $650 million is assets under management.
