HSBC is a HOLD

There has been concern that with the renewed weakness in China and throughout Asia could affect HSBC’s (NYSE: HSBC) earnings due to increased losses on loans in the region. We believe investors are better served to stop accumulating HSBC until we can determine how well this highly diversified bank has weathered the latest stock market rout in China.  

WBK is a HOLD

We had been excited about Westpac’s (NYSE: WBK) expansion plans in Asia, and the Trans Pacific Partnership (TPP) should give the bank access to more markets. Bust like HSBC, we advise investors to stop accumulating until we can assess the impact on the bank from the further growth slowdown in China and in the region.

HPT is a HOLD

We’ve noticed some weakness in one of our REIT holdings, which we attribute to panic selling as a result of the China slowdown and concerns about growth businesses such as hospitality. We believe the U.S. economy will continue to grow and believe growth in travel will continue its upward tick as low oil prices makes air travel cheaper and puts more disposable income in consumer’s hands. We advise investors stop accumulating Hospitality Properties Trust (NYSE: HPT) until cooler heads prevail.