How Did the U.S. Stock Market Become So Intertwined With China?
by Pam Martens and Russ Martens
Wall Street on Parade
Yesterday, Wharton Finance Professor Jeremy Siegel appeared on CNBC to make a prediction that the S&P 500 index would experience a 10 percent upside by the end of this year. You might want to evaluate that prediction against what Professor Siegel also believes to be the U.S. situation with China. In answer to a question as to why the economic situation in China won’t weigh on the U.S., Siegel said: “We export very little to China” (see second video at this link). That statement, in fact, is false. According to detailed data from the U.S. Census Bureau, China is our third largest source of exports, at $106.1 billion through November – behind only Canada and Mexico.
Ruptures in the stock market in China have now cratered U.S. stocks twice in the past six months. Thanks to spillover from China, the first four trading sessions of the New Year for the Dow Jones Industrial Average and the S&P 500 Index have the distinction of being the worst in U.S. history. That’s nothing to sneeze at.
Continue Reading at WallStreetOnParade.com…
Source: http://financialsurvivalnetwork.com/2016/01/how-did-the-u-s-stock-market-become-so-intertwined-with-china/?utm_source=rss&utm_medium=rss&utm_campaign=how-did-the-u-s-stock-market-become-so-intertwined-with-china
