donderdag 10 april 2014

China's Impact on the U.S. Markets

The latest data shows that China is slowing tremendously and this will have severe implications on global markets. I expect a lot of downside in the stock market and I will give a thorough reasoning on why this prediction will come to fruition.

First off, China's import and export market has trended down since 2010 and lately we see a huge slowdown in China's imports/exports. The possible reason behind this is because China is now winding down its commodity financing deals. I have pointed this out here. Basically, Chinese imports and exports of commodities were artificially kept up by this hot money coming into China. When all of this unwinds, we will see industrial commodities plunge and we are seeing it right now. Gold on the other hand will become a safe haven.

Read on here.

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