China's Influence on Our Economy and Your Investments

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

If you have your hand in several investments, then you may be up in arms over China's latest stock market results. But, we're here to put your mind at ease and let you know that to date, there is no need to panic. Although China's current economic state is effecting economies all over the world, here in the United States, Kiplinger reports that "China accounts for just 7% of U.S exports, representing less than 1% of gross domestic product," so their concerns do not need to become ours.

For those of you who are just joining in on the conversation about China, in early January, U.S stocks plummeted 2% after China's stocks fell 7%. Big names such as Nasdaq, Apple, Amazon, Nordstrom and JPMorgan Chase all experienced a decline, however, it is important to understand that volatility from China is something we will just simply need to get used to. When we can get to that point, it will be easier to place our focus on other opportunities that will benefit us in the long run!

Before we move forward, we'd also like to point out that China isn't the only reason for the latest market swings; oil prices are too. For the first time since 2003, oil prices recently came in at under $30 a barrel. As a result, major oil companies have been cutting back on staff and investments, and of course, the stock, bond and currency markets are feeling a bit rattled too.

Considering that our firm works to manage hundreds of millions of dollars in assets annually, and since we work with clients all over the country, we feel that it is our responsibility to keep you informed about the latest market activity and what this means for you. As the market continues to fluctuate, remember this:

1. Look towards the future and focus on the long-term. Even when the market declines, keep in mind that many investors have been rewarded as they pressed on with their investments in times of downturn. 
2. Remember history! In the past, many recoveries have followed declines such as the one we are experiencing now. In fact, every S&P decline of approximately 15% or more has been followed by a recovery since the 1930s.
3. Generally speaking, market rebounds have outlasted declines. Did you know that since 1949, the average rising market lasted 42 months, whereas the average declining market lasted only 14 months? Declines are natural!

With that said, do you have investments that you need help keeping track of? Here at American Investment Planners LLC, we can work with you to monitor all of your accounts to ensure that you're moving in a direction that is aligned with your financial goals. Our team of financial advisors are here to help you get through many of life's greatest events, including fluctuations in the markets.

For more information about our financial planning services, or to learn more about the current events happening with the Chinese and United States economies, please give us a call at (516) 932-5130.