The Challenges of the China Market

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.3 • 3.1K Ratings

🗓️ 2 July 2026

⏱️ 25 minutes

🔗️ Recording | iTunes | RSS

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Summary

HAve you noticed that more and more companies are finding the Chinese market is a headwind for companies? You’re not alone. Automotive companies, clothing retailers, beauty products, and many more are either losing market share or seeing sales decline. Jon, Matt, and Tyler break down why the Chinese market has been such a challenge for so many companies, who could be the next company to experience this, and how investors can navigate this trend. Plus, the unconventional winners & losers of the S&P 500 and listener questions. Tyler Crowe, Matt Frankel, and Jon Quast discuss:- S&P 500’s (volatile) winners and losers in 2026 so far- The unexpected winners and losers- The changing Chinese market- Could Apple and memory be the next China market victims?- Mailbag: Navigating fair values for stocks Companies discussed: CASY, TSCO, GLW, FICO, NKE, LVMH, AAPL, SBUX, DECK, CAT, MSFT, Host: Tyler CroweGuests: Matt Frankel, Jon QuastEngineer: Bart Shannon Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement. We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode. Learn more about your ad choices. Visit megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	The challenge of China's market today on Motley Fool Hidden Gems Investing.
0:07.0	Welcome to Motley Fool Hidden Gems Investing.
0:15.0	I'm your host, Tyler Crowe, and today I'm joined by longtime pool contributors, Matt
0:18.6	Frankel and John Kwas.
0:20.6	So we're going to really dive
0:22.1	into the challenge that a lot of companies have been facing in China recently. We discussed it
0:29.0	yesterday on the yesterday's podcast related to Nike's earnings. We're going to scratch that a little
0:33.2	bit deeper because there's a lot more companies than just Nike that are suffering this problem.
0:37.3	But before we do that, it is July 2nd. Well, we're recording on the first, but hey, you know what?
0:43.3	For you guys, it's the second. It means we're more than halfway through the year. And so far,
0:48.1	the S&P 500 has been a wild, wild place. We've had some incredible performance up and down the spectrum. And I got
0:56.4	to say, guys, I think so far this year, I think I've seen the widest spread of outcomes in the
1:02.1	S&P 500 in a long time. Well, yeah. I mean, first and foremost, if my math is right here,
1:08.6	we had 22 stocks double or more in the first half of 2026.
1:14.6	Now, I'm talking about 22 stocks among the constituents of the S&P 500.
1:19.3	That doesn't seem normal to me.
1:21.6	I haven't checked the historical data, but having that many stocks double or more.
1:26.7	I mean, we look at some of the higher end stocks,
1:29.1	the top five, I mean, it's far more than that. So to have the, these are the largest US-based
1:34.9	profitable companies to have this many going up this fast. It just is remarkable. To your point,
1:41.6	too, John, it's not just like, you know, the smallest companies going
1:45.4	from like 20 billion to 40 billion. This is like micron going from 500 billion to a trillion
	...

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