TheStreet’s Jim Cramer says China is the subtext behind a lot of what is going wrong in U.S. markets. But Cramer believes fears are overblown. ‘Oil is going down because people feel China demand is not that good, coal is going down because the export market for coal is not that good, Alcoa (AA) is going down because aluminum is just being made in abundance suddenly this quarter in China, and of course United Technologies (UTX) is signaling that Otis Elevator is very, very weak in China, in aerospace we’re concerned about the Chinese orders and that all comes back to why Apple (AAPL) stock really went down, which is people feel that the upside is being stolen by the Chinese stock market.’ Cramer goes on to explain that ‘iPhones for this next quarter won’t be that strong, China being the big driver for sales in Apple.’ He notes that Apple CEO Tim Cook said there could be speed bumps but all in all, Cook is very encouraged by China longer-term. Cramer advises investors to keep an eye on China because ‘the longer the stock market doesn’t come back to the old highs, the longer the stock market languishes here, the more people are going to be saying, you know what we’ve got to cut numbers autos, we’ve got to cut numbers steel, we’ve got to cut numbers everything because of China.’
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