China's economy is in trouble

China manufacturing index declined from 49.6 in March to 49.2.

This levels suggests manufacturing activity is contracting in China. China is in big trouble.

Like all autocratic countries their economy will remain weak and artificially boosted by various ineffective (fiscal and monetary) stimuli.

China, like Europe, remains a major headwind for the global economy.

Can the US economy grow at a healthy pace when close to 50% of the global economy is stagnant or in recession?

Maybe this is the real reason for lower oil prices, weak commodities and lower global yields.

George Dagnino, PhD
The Peter Dag Portfolio
Since 1977
Author, Profiting in Bull and Bear Markets
No. 1 bond timer in the past 12 months. 

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