Softer Landing Seen for Chinese Consumers
Consumer stocks, however, benefit from elasticity of demand as in the U.S. and mentioned above but consumer stocks in China also benefit from an emerging middle class in China and a migration of Chinese citizens from rural areas to more urban settings for work that leads to that middle class lifestyle.
If the hard landing materializes as feared it would not be a recession as typically thought of in the U.S. Hard landing concerns center around GDP dropping to mid-single digits. That would be a large drop from current levels and would reasonably hinder industrial output but consumer demand for goods and services would be relatively unaffected making CHIQ a relatively safe way into China.
At the time of publication the author had no position in any of the stocks mentioned.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts