Stay Away from Chinese E-commerce Stocks

Alibaba

It looks like the economic slump in China is highly affecting major e-commerce companies like Baidu and Alibaba. Both companies have seen their stocks plummet as a result of recent selloffs. And who knows where the bottom will be?

I advise staying away from these companies until the dust settles. Yes, E-commerce is no doubt the wave of the future, but why take a chance on such companies when there is turmoil and economic certainty abroad. A better way to go is to lighten up on stocks in general until things calm down a bit.

To read more about the troubles affecting Chinese E-commerce companies, check out this article on Forbes: http://www.forbes.com/sites/russellflannery/2015/08/30/alibabas-film-unit-posts-24-mln-first-half-loss-amid-twists-and-turns/


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