Hard landing!
No. Soft landing!
And so the debate continues over the extent at which China is slowing its economy. China's central bank on Tuesday raised reserve ratio requirements for banks for the ninth time since last October after data showed inflation had rose to its highest level in nearly three years.
To renown economist Nouriel Roubini, the data suggests the People's Republic is facing a "meaningful probability" of a hard landing. David Riedel, on the other hand, takes a different view.
"There's no evidence anywhere, except for some people who don't know anything about China, that China's heading toward a hard landing," said Riedel, founder and president of Riedel Research. "They've got a healthy, growing economy."
In other words, Riedel thinks China's poised for a soft landing.
Riedel acknowledged that China has inflation higher than they'd like, but the country is matching it with increases in income. It's also managing a transition from an export-oriented economy to a domestic-oriented economy. In the end, Riedel said the data suggests a measured slowdown of China's economy.
To trade it, Riedel would consider high margin, consumer-oriented names in the technology space, like Tencent (0700.HK) and Alibaba.com (1688.HK).
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SAFE TO BUY NOW THAT 'FEAR INDEX' SUBSIDES?
Is it safe to buy stocks now that the so-called "fear index" has plummeted to near the 18 level?
Yes, according to trader Joe Terranova. At this time last year, the VIX was trading between the 20 to 25 level. With the VIX now trading below 20, he's willing to step in and buy some positions.
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Trader disclosure: On June 14, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Cortes owns (GOOG); Cortes owns (SVU); Cortes is short the Nikkei; Cortes is short the Australian Dollar; Cortes is short Silver; Cortes is short (BIDU); Brian Kelly owns the New Zealand Dollar; Brian Kelly owns (USO) puts; Brian Kelly is long U.S. Dollar; Brian Kelly is long (IWM) puts; Brian Kelly owns (MON) ; Brian Kelly owns (DBA); Terranova is short (DELL); Terranova owns (FCX); Terranova owns (F); Terranova owns (CVI); Terranova owns (AAPL); Terranova owns (VRTS); Terranova owns (IBM); Terranova owns (MA); Terranova owns (HPQ); Terranova owns (VRTS); Terranova owns (XOM); Terranova owns (BJ); Terranova owns (DAR); Terranova owns (TM); Terranova owns (MCD); Terranova owns (PEP); Terranova owns (BX); Terranova owns (CAT)
For Patty Edwards
Edwards Owns (AAPL) For Clients
Edwards Owns (COST) For Clients
Edwards Owns (GOOG) For Clients
Edwards Owns (MSFT) For Clients
Edwards Owns (TGT) For Clients
Edwards Owns (JWN) For Clients
For Gene Munster
Piper Jaffray Is A Market Maker In (AAPL)
For Jeff Klinefelter
Piper Jaffray Usually Provides Bids And Offers For The Securities Of (TGT), (JCP) And Will, From Time To Time, Buy And Sell The Securities Of These Companies On A Principal Basis
For Brian Kelly
Accounts Managed By Brian Kelly Capital Are Long New Zealand Dollar
Accounts Managed By Brian Kelly Capital Own (USO) Puts
Accounts Managed By Brian Kelly Capital Are Long U.S. Dollar
Accounts Managed By Brian Kelly Capital Own (IWM) Puts
Accounts Managed By Brian Kelly Capital Own (MON)
Accounts Managed By Brian Kelly Capital Own (DBA)
Accounts Managed By Brian Kelly Capital Are Short Euro
Accounts Managed By Brian Kelly Capital Are Short (JJC)
For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (LHO)
Virtus Investment Partners Owns More Than 1% Of (NRCI)
Virtus Investment Partners Owns More Than 1% Of Sun Pharmaceutical|
Industries Ltd.
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLF)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of DOMINO'S PIZZA UK &
URL PLC
CNBC.com with wires.
