Are Companies, Investors Aware of Their China Risk?

Visitors take photos outside the Wynn casino resort with a view of the Grand Lisboa (top C) casino resort building in Macau, China, on March 5, 2019. Anthony Wallace/AFP via Getty Images

Commentary

The earnings of companies within the S&P 500 Index are currently 90 percent correlated with China’s gross domestic product growth, according to Bank of America analysts. In 2010, that correlation was zero.