NEW YORK ( TheStreet) -- When China -- the planet's second-largest economy -- takes a dive, it understandably unnerves investors globally.
It's the most cash-rich, with the biggest hoard of foreign exchange reserves in the world and low levels of debt compared to other G20 countries. China's government debt amounts to 41% of GDP versus 92% for the Eurozone, more than 100% for Uncle Sam and 230% for Japan.
However, you must put in perspective that the People's Republic makes up only about 17% of global gross domestic product. In addition, the Chinese powers that be have more armaments to juice economic growth. On Wednesday, China pumped $22 billion into its economy.
To be sure, the global economy may be frail, but the U.S. stands strong. There's a bifurcation between the domestic and foreign stock markets.
Here are six solid reasons why you should invest in U.S. stocks now in light of the stock market correction.
1. Real U.S. GDP growth in the second quarter will probably be revised up to a 3.0% annual rate from the 2.3% rate reported initially. Most of the revision upward reflects final sales numbers. UBS projects real U.S. GDP to grow 2.3% for 2015 and 2.8% in 2016. Therefore it's not likely that the high for the S&P 500 from May 20th was the final high for this bull market cycle given that over the last 25 years, bear markets have occurred because of a looming U.S. recession. Quantitative easing is credited for fueling the first stage of the bull market while hearty economic fundamentals support the second stage.