Although China’s economy is slowing, its implications for western economies are manageable. It is important to watch for signs of financial contagion from distressed commodity exporters, but the weakness in oil prices is a healthy development rather than something to give investors sleepless nights.
Chris Jeffrey is a strategist in LGIM’s asset allocation team
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MARKET DECLINES
6.6%
Average annualised return of the MSCI All Country World index for the 10 years to December 31 2014, in spite of the financial crisis
15%
Declines of this magnitude occur every 3.5 years on average
78.9%
Return produced by MSCI All Country World in 12 months following 2009 low
Source: Capital Group
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