In this podcast, Oakworth Capital Bank Chief Investment Officer John Norris shares perspectives on current events that are impacting the economy and influencing investment strategies. Each episode explores the trends, developments and market forces shaping today's investment landscape.
*Oakworth Asset Management is a registered investment advisor. All advisory services, including investment management and financial planning, are offered through Oakworth Asset Management, LLC, which is owned by Oakworth Capital Bank, member FDIC, Equal Housing Lender. Investment products and services offered via Oakworth Asset Management, LLC are independent of the products and services offered by Oakworth Capital Bank and are NOT FDIC INSURED, NOT BANK GUARANTEED, and MAY LOSE VALUE. The information, opinions, comments, statements, views or recommendations expressed should not be considered professional, tax or legal advice; or as an offer to buy or sell or to make or consider any investment or course of action.
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Jul 18, 2024
The collapse in the real estate market in China, and subsequent banking crisis, haven’t attracted much media attention in the United States. However, it is a very real story to the average Chinese citizen and that country’s prospects for economic growth moving forward. Simply put, the incredible erosion of wealth due to falling housing prices will constrain consumer spending and investment for the foreseeable future. Numerous private sector bank failures will leave Beijing even more in control of the financial system. As a result, what the central government doesn’t outright own it can control through the access to credit. This will undoubted curtail innovation and entrepreneurialism. While China can continue to grow and remain a threat to the United States, its growth rates have peaked, probably permanently. What will that mean as the Chinese Communist Party tries to cling to power?
In this week’s Trading Perspectives, Sam Clement and John Norris discuss the ongoing real estate and banking crises in China, and how it will likely impact the global economy? Why is this such a secret?