Oracle Corporation (ORCL): Why Investors Should Be Cautious Over China

Such issues have created operational issues at FedEx Corporation (NYSE:FDX) as it was geared up for international growth in its international express services. It was a growth that never came and over the last couple of years it has been restructuring and taking impairment charges as it retires unnecessary aircraft and routes. Indeed its big upside opportunity is to generate cost savings in express going forward.

The bottom line

Putting these results and commentary together paints a picture of some short term weakness plus some structural issues in China. Investing in the types of heavy industrial plays on China that worked so well in the past isn’t going to be the best option anymore and there are question marks over the viability of China’s plans to shift to a more consumer orientated economy.

It’s time to be a little cautious over China.

Lee Samaha has no position in any stocks mentioned. The Motley Fool recommends FedEx. The Motley Fool owns shares of Oracle..

The article Why Investors Should Be Cautious Over China originally appeared on Fool.com.

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