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Can We Believe What China Tells Us?

Michael Farr

With Michael Farr, President of investment advisory firm Farr, Miller & Washington LLC

Sharp stock market losses in July 2015 have made China a recent hot topic, with Michael Farr weighing in on the implications of a sharp drop in China, the Chinese government’s attempts at controlling the decline and what the drop really means for China and the world economy. China’s also the next new worry after a debt crisis resolution in Greece (contentious as that might be) and agreement on conditions for the lifting of sanctions in Iran.

Investors also worry about the believability of economic data coming out of China and try to make the most out of the manufactured data reported by the Chinese government. So is China really growing at the 5% – 6% rate the government claims or is it time to head for the exits with investments in that country. Also, what do commodity price drops reflect on China demand for raw material for infrastructure development?