Real-Time Quote
US News
Page 1 of 2 | Next Page
Show Entire Article

How to Trade China's Slowing Growth
CNBC.com | March 23, 2012 | 08:39 PM EDT

The red-hot Chinese economy is slowing, and the government is pushing back. This strategist has a way to play the tension.

China's economy is slowing so much, the country has essentially ordered its citizens to 'shop till you drop' by designating National Consumption Month . Gina Sanchez, economic director of equity and asset allocation at Roubini Global Economics, is skeptical.

Sanchez expects a push for consumers to spend to simply accelerate consumption rather than increase it overall. In addition, she told CNBC's Melissa Lee , "we think that falling property prices are going to impact the wealthy and that's going to impact National Shopping Month." Still, she does anticipate a certain inflationary impact from the spending push - and of course inflation tends to be positive for a currency.

Rebecca Patterson , chief markets strategist for J.P. Morgan Asset Management, Institutional, agrees, and points out that as far as China is concerned, "you can play it through a lot of other liquid markets."

Patterson has looked at several currencies for patterns parallel to China's, and she has found a winner: the Australian dollar, at 88 percent correlation.

Page 1 of 2 | Next Page
Show Entire Article
Real-Time Quote
omniture pixel