When was the last time, outside of the Olympics, that your heard some great news about China? While I may be at a loss to come up with an answer, Hugh Johnson, the Chairman and CIO of Hugh Johnson Advisors is not. At least as it pertains to their central bank taking necessary steps to offset the impact from a string of weak economic data recently.
"The one thing you can count on is the Chinese policy makers taking steps to stimulate the economy," he says in the attached video, calling the leaders and planner of the People's Bank of China "very skillful, very adept at managing their economy."
While the debate rages over whether or not the powers that be in Beijing will be able to actually steer the world's second largest economy out of its ditch, Johnson isn't too concerned.
"My guess is, being on the optimistic side, is that they'll manage their way through it," he says in the wake of export/import data that caught economists off guard. "I don't think a hard landing is in store."
While he concedes that the unpredictability of China's slump will make it very tough on U.S. companies doing business there, he doesn't think it will be enough "to drag the U.S. into recession or kill the current bull market or recovery cycle."
So you can either stress out about the next economic report from Beijing, or you can embrace the likelihood that we are going to see a vigorous response, and stay long.