When it comes to the stocks we own, I’m not concerned with the troubles of Greece. I’m really not. Doesn’t affect us. Our stocks will fall, then (usually) bounce back. Been there before. The market is in a correction and our stocks historically fall more than the market, so hold on tight.
What scares me is China. As much as 60% of China’s GDP relies on construction (source: Bloomberg) and in recent months the counties government has put the brakes on financing third homes and raised down-payment requirements for second homes. A housing crisis like we had in 2008 could happen in China.
China could harm the world economy, Greece can’t. China’s concerns and the chaos in Europe is causing investors to put money in safe places — like here in America. During April U.S. stock funds beat all global regions (source: Investors Business Daily).
Minimize risk from China and focus on a small selection of American companies that continue to bulldoze ahead.
