Fallout from the Chinese real estate market – Paradise Post


This uproar is not the only concern in the Chinese economy.

Provided by Richard H. Mootz, CFP®

There is a famous saying about a hurricane from a butterfly flapping its wings halfway around the world. This “butterfly effect” is certainly occurring in terms of the influence of the Chinese real estate market on financial markets around the world.

For America, worry contributed to the worst day for the S&P 500 since May of this year. Building on a decline in China, the effect is being felt in related industries in the United States, such as construction equipment and investment companies.1

This uproar is not the only concern in the Chinese economy. Chinese President Xi Jinping is enacting policies throughout the year to give the government greater control over private enterprise. For many, this is seen as a drag on decades of economic growth and a real change for a global economy accustomed to a more permissive Chinese economy.2

Nonetheless, it’s important to remember that regulatory behavior around the world, however strict, is one of the many factors that your trusted financial professional considers. In addition to regulatory risks, international markets exhibit differences in financial reporting standards, exchange rates, political risks and foreign taxes.

If you have any questions or concerns about this situation, I welcome the opportunity to speak with you.

Richard H Mootz, CFP® CERTIFIED FINANCIAL PLANNER ™ Professional, is a registered representative and offers securities through Securities America, Inc., a registered broker / dealer, FINRA / SIPC member. Advisory services offered by Securities America Advisors , Inc., An investment advisory firm registered with the SEC. Mootz Financial Solutions and Securities America are not affiliated.

Richard H Mootz, CFP® CERTIFIED FINANCIAL PLANNER â„¢ professional can be contacted at (530) 877-7007 – by email at rick@mootzfinancial.com or visit the website at www.mootzfinancialsolutions.com. Securities America and its advisers do not provide tax or legal advice. Please consult your tax or legal professional regarding your personal situation. CA insurance number 0C75924

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party or its affiliates. This information comes from sources believed to be accurate. Please note that investing involves risk and past performance is no guarantee of future results. The publisher is not engaged in the provision of legal, accounting or other professional services. If assistance is required, the reader is advised to seek the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding a federal tax penalty. This is neither a solicitation nor a recommendation to buy or sell any investment or insurance product or service, and should not be construed as such. Not all indices are managed and do not illustrate any particular investment.

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