Someday China's numbers won't matter

The US isn't strong enough not to care about them now. But one day it will be.

By Jim Cramer Mar 10, 2014 10:55AM

Nanjing Road shopping area at night Shanghai China © F1 Online/Rex FeaturesMaybe one day we will wake up and China won't matter. Maybe one day China will be down big and we'll have to say, "Oh, well, that's China," and leave it at that.


We are not at that day yet. In fact, we are still going to feel the pain of some Chinese import or export number that may or may or may not be accurate. It will send commodities down, which will then send emerging markets down, which will then send down the stocks of U.S. companies that do business in the emerging markets. That will send down the stocks of the banks most exposed to world trade, which will then send down the ETFs that encompass all the bank stocks, which will then help influence all trading, because the banks are so important.


And so on.


TheStreet.com logoWe just aren't strong enough not to care. One day we will be, though, and I say that only because Europe is hanging in there today, and Europe had always rolled over on poor China numbers because so much of the Chinese export market is taken by the Europeans. Somehow that has always translated into Europe's being weakened by China -- and not vice versa -- but the futures guys who control this stuff have never been keen on real causality.


Anyway, as we watch the commodity companies try to pull down the rest of the markets with their slumber, and as we weigh the implications of it all, remember that higher commodity prices are actually bad for most producers of goods and that we are a goods-producing country.


Just something to keep in mind as you think, "Maybe I have to join those futures sellers and blow out of the U.S. equity market because China simply isn't using enough copper."


That pretty much says it all.


Jim Cramer headshot



Jim Cramer's Action Alerts Plus: Check out this charitable trust portfolio and uncover the stocks Cramer thinks could be winners.





More from TheStreet

28Comments
Mar 10, 2014 1:04PM
avatar
Cramer China matters because every man, woman, or whatever working American owes China $28,000. This grows as our government debt skyrockets. Why do you think we are timid in the Ukraine? Do you think China will loan us money to rattle our sabers at Russia?  China will matter until we no longer live on borrowed money.
Mar 10, 2014 1:30PM
avatar
Why don't you sing "Somewhere Over the Rainbow" Bobo........ put a smile on. No one likes a sad clown.
Mar 10, 2014 12:40PM
avatar
When interest rates hit 5% nobody's numbers will really matter! Boomers will dump US stocks like the black plague.
Mar 10, 2014 12:08PM
avatar

we let the tiger out of the cage.  china will surpass USA in time. 

 

profits being almighty, we sent our secrets to them, and set up shop.  All for maximizing the dollar in profits. 

 

we reap what we sow. 

Mar 10, 2014 11:21AM
avatar
What....things aren't so rosey? And someday that won't matter? Dream on.
Mar 10, 2014 1:41PM
avatar
This sound like Obama and the liberals economic program!!!! Destroy America, support Obama and socialism!!!!
Mar 10, 2014 1:10PM
avatar
All China has to do is announce that they will sell off all of their US debt holdings (multiple $trillions) and buy gold, and the US economy and the dollar as the world's reserve currency will both be TOAST.

Maybe one day we'll wake up and China will matter very, very much.
Mar 10, 2014 11:21AM
avatar

Supply siders all seem to try and solve our problems with cheaper cheaper cheaper.  Life and an economy run by short sighted supply siders is what we have world wide and guess what?  It isn't working for the masses.  Sure we have a few rich elites amassing fortunes and an envious underclass thinking they may become part of it one day.  But much like explaining human emotions to an engineer supply siders just can't dance to the sound of the music.  You destroy your consumers and then sit and complain about no demand. Yes we will soon move away from China to India and then on to Mexico and Central America but one thing will remain the same. Supply side trickle down does not work in the long run.  To watch supposed good business folks send their markets into purgatory by thinking they have all the "correct" answers continues. The dog continues to chase its' tail and I just keep getting older and laughing because there is nothing else one can do.

Mar 10, 2014 1:58PM
avatar
Looks like fat cat got gagged! Reincarnated as Senor Akimoto. Now thats funny!!
avatar
ROFL

Cramer that was very funny -- one day China will not matter.

It's like we use to say when the US catches cold Europe gets sick.

Of course China is always going to matter and matter more and more each day.

The sad truth is China is about to imploded as the new leader Xi really believes the silly market forces are the right way to move China into the new world order.

What has served China's economy for 30 years now is that fact that they understand how to do a command economy. That put them ahead of everyone else on the planet.

Now Xi is destroying all that by adopting free market ideas. China is already on a projected course of destruction ahead of the USA. Not that USA is not going to self destruct by Sept 15, 2015 it's just that China will beat us to the punch most likely by March of 2015.

Mar 10, 2014 1:03PM
avatar
the Chinese communists are the best capitalists in the world......they make huge profits off their slave labor..........nobody can compete with them
Mar 11, 2014 12:21PM
avatar
First, to understand Chinese, you have to understand his philosophy, if we continue to think as Americans, we will not see, how they work, simply, that's what they want, we continue waiting and thinking about fantasies, that's what we have always fact, do not even know, no history and only one language ACKNOWLEDGE. They have been preparing for that, because they know that we are dreamers.
Mar 10, 2014 3:01PM
avatar

I'm really not sure how much people or people in this Country really know about China..??


In my opinion....We will need China, long after they need the U.S.

China has a burgeoning population, that's going to want better stuff and more of it someday...

And China could even be in the position of who they want to export to..


When they fully develop their Manufacturing and Resources, they may only want to support themselves and become a "closed Society" again..

More then likely they would be able to pick and choose, and they are not above that..


Although China has had some minor changes in their Societal Make-up..

They could fall back to:

The Politico/Military

The Elite

And the Proletariat.....And they can accomplish it in a hurry..

Mar 10, 2014 11:50AM
avatar
"Someday China's numbers won't matter
The US isn't strong enough not to care about them now. But one day it will be.

Maybe one day we will wake up and China won't matter. Maybe one day China will be down big and we'll have to say, "Oh, well, that's China," and leave it at that."


Jimmy, literally every Major US company is basing their future Growth thus Earnings on China, but you say that doesn't matter. Jimmy you really are losing it these days.

Mar 10, 2014 2:07PM
avatar
NOT TODAY OR ANY DAY SOON. God, you Kool Aid FREAKS are too much. The more we revert to paper and button pushing, the more totally helpless over-confident losers believe we are someone we aren't. When your degree falls WAY behind the confirmations of your SKILL SETS, we'll be what Jim's article says we will. NOT TODAY THOUGH. 
Mar 10, 2014 1:51PM
avatar
Again, like we said this morning, be careful with sucker's rallies and stay on the sidelines; the last one ended at 1330 hrs when they called once again to accelerate the selling....Manipulators in control and outnumbering us all on and off the floor today....Basically another wasted one....We will see what happens these last couple of hours...Never give up but also know when you are outplayed.
Mar 10, 2014 1:21PM
avatar
Usual gibberish from a bunch of old fools who days are numbered. These clowns should stick to debates at the local donut shop or VFW with all the other worthless old fools!

Yuk yuk!
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

120
120 rated 1
265
265 rated 2
460
460 rated 3
719
719 rated 4
629
629 rated 5
629
629 rated 6
622
622 rated 7
437
437 rated 8
319
319 rated 9
116
116 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
BBBYBED BATH & BEYOND INC10
FOXATWENTY-FIRST CENTURY FOX Inc CLASS A10
TWXTIME WARNER Inc10
COPCONOCOPHILLIPS9
HDHOME DEPOT Inc9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.