Scott Minerd (Guggenheim Partners)
The good news is that I do not believe the volatility in Chinese equity markets will have any meaningful impact on the US economy. In the short run, however, selling pressures in China will continue to spill over into other equity markets including the US. This is the product of global capital flows. Eventually, the capital leaving China must find a new home. The US and Europe will eventually benefit.
As I look at the markets so far this year, I am reminded that “cooler heads will prevail”.
The good news is that I do not believe the volatility in Chinese equity markets will have any meaningful impact on the US economy. In the short run, however, selling pressures in China will continue to spill over into other equity markets including the US. This is the product of global capital flows. Eventually, the capital leaving China must find a new home. The US and Europe will eventually benefit.
As I look at the markets so far this year, I am reminded that “cooler heads will prevail”.
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