Rich Sega, global CIO at Conning, weighed in on whether or not companies were just crying wolf when it comes to China.
"I've heard that, that some companies might use the story to cover other problems and sort of get a kitchen sink quarter into there so they can sweep it under this big announcement. I think China's one thing but just think of all other potential drags we have on the economy recently. I think the Fed's rhetoric was more threatening than their actual actions, but it took a while for them to back off and calm markets from that fear. We had to shut down that's just over, but not really over because in three more weeks we could have another round of some kind," he said. "There are a lot of things dragging the markets down. So, I'm not sure that China alone is the source of all the earnings. You know Apple had been signaling weak iPhone sales for a long time, shouldn't have been a surprise to investors. Cat same thing. Given their dependence on demand from developing countries. So I don't think that's a broader indication of industrials generally I think earnings could still be pretty good this year."
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