How could the protests in Hong Kong impact the U.S.-China trade war?
Matt Miskin, co-chief investment strategist at John Hancock Investment Management, sat down with TheStreet to discuss the potential impact of the protests on the trade talks and what the protests mean for China.
"Well, China's right now reaching a perfect storm, so they have a lot to deal with.
They have the trade deal and the trade wars that are going on and now they have domestic policy issues that they have to deal with Hong Kong.
What we believe is underappreciated is how important China is, one to global equities and two to the global economy.
So in terms of equities, be careful of the emerging markets.
China makes up about a third of the emerging market equity indices," said Miskin.
"So that's a huge component.
And then for global growth, it's a huge component.
So they are the number one contributor to global growth and from an economic standpoint.
Cyclicality is something you should be careful of.
So sectors that are highly cyclical in nature can see weakness as China slows and the emerging markets because you're going to get pinpoint exposure to China using that.
You may want to think about decreasing that.
And we actually decreased emerging market equities at the end of last quarter as we saw slowing growth start to develop into the back half of this year." Premium Pick: Markets Reverse and Surge on China News Ask the Expert: The Scariest Thing All Investors Have to Face Ready to Retire: The Biggest Threat to Your Retirement?
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