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Edward Dowd, founding partner at OceanSquare Asset Mgmt, ex-BlackRock exec, highlights an acute economic crisis unfolding in China.
According to Dowd, output in China's construction sector began to decline in Q4 2025, with the downturn accelerating in Q1 2026 to an annual rate of nearly minus 8 percent. He links the slowdown in construction output value to ongoing weakness in the country's real estate segment.
Dowd previously pointed to executive concerns about AI-related market risks, including capacity double booking and a possible inventory correction, in an earlier analysis. He also highlighted the market’s attention on the May 12 CPI release and Kevin Warsh’s term as the new Federal Reserve chair beginning May 15 in a recent report. His recent comments add to a series of observations on shifting patterns in global economic activity.