Spillovers from the Chinese real estate market
There is a famous saying about a hurricane departing from a flapping butterfly on the other side of the world. This “butterfly effect” certainly occurs in terms of the influence of the Chinese real estate market on financial markets around the world.
For America, the concern contributed to the worst day for the S&P 500 since May this year. With construction declining in China, the effect is felt in related industries in the United States, such as construction equipment and investment companies.
This tumult is not the only concern of the Chinese economy. Chinese President Xi Jinping adopts policies throughout the year aimed at giving the government greater control over private enterprise. For many, this is seen as a drag on decades of economic growth and a real game-changer for a global economy accustomed to a more permissive Chinese economy.
Nevertheless, it is important to remember that regulatory behavior in the world, no matter how strict, is one of many factors considered by your trusted financial professional. In addition to regulatory risks, international markets present differences in financial reporting standards, exchange rates, political risks and foreign taxes.
If you have any questions or concerns about this situation, I welcome the opportunity to speak with you.
Richard H Mootz, CFP® CERTIFIED FINANCIAL PLANNER™ Professional, is a Registered Representative and offers securities through Securities America, Inc., a Registered Dealer/Dealer, Member FINRA/SIPC., Advisory Services Provided by Securities America Advisors, Inc., an SEC-registered investment advisory firm. Mootz Financial Solutions and Securities America Companies are not affiliated.
Richard H Mootz, CFP® CERTIFIED FINANCIAL PLANNER™ Professional can be reached at (530) 877-7007 – email [email protected] or visit the website at www.mootzfinancialsolutions.com. Securities America and its advisors do not provide tax or legal advice. Please consult your tax or legal advisor regarding your personal circumstances. CA insurance number 0C75924
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