Oh, China… what a way to kick off the year for the markets.
We’ll play the cards we’re dealt. Here are some China-related stocks to dump, and surprisingly, one to possibly buy.
The tumbling Chinese economy, and its market’s plunge, sent U.S. stocks—specifically those with ties to China—tumbling to their lowest January opening since 2000.
Throughout the first part of 2015, Chinese stocks soared. Investors saw huge gains in China, as its overall indexes soared 150 percent, finally ending their rise over the summer.
Then, it became clear those stocks were overvalued and some said that the market was driven by momentum, not actual value or fundamentals — in other words, the bubble burst.
China tried to fix the steep dives by adjusting its interest rates. That didn’t help. Then, the country devalued its currency, which made everyone panic and sell off their stocks.
The companies that should be worried are those with a lot of exposure to China, and they cut across markets from semiconductors to hospitality.
Which companies should U.S. investors avoid?
Here are four stocks with huge exposure to China, and one that may come out a winner regardless.