Tomahawk, WI 09/23/2014 (Basicsmedia) – Alibaba Group Holding Ltd (NYSE:BABA)’s IPO came and went, leaving behind a series of effects that are being felt in the market with many stocks retracting back to lower trading margins. The Chinese government has made the situation even worse after stating it was’ contended with the slowing economy and would not adjust any of the country’s economic policies. CNBC’s Jim Cramer argues that the effects of the Chinese government opting to hold a back seat on the slowing economy could be’ felt across the globe in the long run.
“I was astounded to see comments from the Chinese government of how it is contend with the country’s slowing economic growth, and may not feel to do more get things moving again.[…] The idea that China is happy with a slower level of economic growth that’s not good, “said Mr. Cramer.
Despite China grappling with a slowdown in the economy, Alibaba Group Holding Ltd (NYSE:BABA) seems to be enjoying one of it’s finest runs in the market especially after successfully carrying out one of the biggest IPO in U.S. history. The frenzy running into Alibaba IPO had caused a number of stocks to surge in the market but have since retracted back to lower trading margins.
Copper is one of the products that is sinking in the market after the much publicized Alibaba Group Holding Ltd (NYSE:BABA) IPO. Caterpillar Inc. (NYSE:CAT) is, on the other hand, absorbing the effects of a slowing Chinese economy as it continues to plummet in the market.
A decline in the Chinese economy has already caused a decline in demand for industrial raw materials considerably affecting companies in the U.S according to Cramer. Oil prices have been dropping to the excitement of consumers but with consequences to the drilling costs in the U.S. which most of the time demand higher prices to command impressive profit margins. W&T offshore, Inc. (NYSE:WTI) Crude is one of the stocks that has been affected by the declining oil prices that has immensely affected its stock price.
“We are dealing with an Alibaba Group Holding Ltd (NYSE:BABA) induced hangover overlaid by China’s avoidance to accept slower growth that requires fewer imports that was surprising. [..] I say let stocks come down buy the good ones as usual, “said Mr. Cramer.