I had a spot on CNBC’s Street Signs today with my old friend Steve Liesman to discuss the impact of the weak growth reports for the China economy over the weekend. Steve is a great guy and good to work with. Some years ago, when I lived in Greenwich and was a regular guest host on Squawk Box, Steve and I did a series of flip chart spots to explain some of the more complicated and ideas in economics and finance.
My main point, as always, was to say we should slow down and think about this before we get too excited. Recent numbers so show slowing in China’s manufacturing sector, partly due to the slow slide of the EU economy, China;s biggest trading partner. And China is growing more slowly than a few years ago. But their economy is not collapsing and there is not a real estate bubble. China will grow about 7% this year and urban incomes will grow about 10%. The growing middle class story is still intact. None of this means, of course, that you should buy shares in the Chinese stock market. I prefer to make my bets on China growth using stocks of companies that make their money in China but are located in places where there are lots of English-speaking judges in long black robes, like the US, UK, Canada, Australia, and Singapore.
You can see a short video on the interview by clicking here.