http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-markets Worst Threat to Your Portfolio (and Global Markets) Which is the worst threat to your stock portfolio (and global markets), a Greek debt default or a Chinese stock market meltdown? Two economic situations are unraveling on opposite ends of Eurasia. The Greek people have voted “no” to more austerity measures in return for further debt relief. The seemingly miraculous Shanghai stock market has lost a quarter of its value in the last month. Which is the worst threat to global markets? China obviously has a larger economy than Greece but if the Greek situation damages the European Union that will affect one of the two super economies in the world (North America and Europe). The Chinese Market Meltdown The Chinese economy is cooling but that is not the immediate problem. The problem for China is debt. Similar to Japan in the late 1980s, many Chinese companies are deep in debt and much more fragile than one might expect. The Chinese stock market is dominated by mom and pop investors who have all too often borrowed money to invest as the Shanghai market went up 150% in a year. But anyone who invested late has lost money as the market has lost a quarter of its value (eleven years of Greek economic production) in the last month. And there is more to the market rout in China. The New York Times talks about a double threat. For nearly three years, President Xi Jinping of China has crushed opposition by silencing and often locking up anyone who dares defy the government. But that aura of invincibility has been shaken by stock market speculators who have made a mockery of efforts to halt a steep slide in share prices. The losses – Chinese shares have shed more than a quarter of their value in three weeks – pose an added risk, and possibly greater danger, to a global economy grappling with Greece’s difficulties in repaying foreign loans and its possible exit from the euro. About $2.7 trillion in value has evaporated since the Chinese stock market peaked on June 12. That is six times Greece’s entire foreign debt, or 11 years of Greece’s economic output. The underlying issue in China is that the Communist party seeks to project an aura of invincibility in order to maintain control. A significant economic downturn coupled with loss of savings across a broad spectrum of Chinese society could lead to social upheaval. That would be a worse threat to global markets that a Greek economic decline. Is This about Greece or the EU? Greece has a small economy compared to China but the European Union is a far larger economy than China. It is the integrity of the European Union and the European Monetary Union that is of concern when investors worry about the Greek debt crisis. Thus USA Today reports that U.S. shares as well as global markets opened lower after news of the Greek vote against more austerity

1. Worst Threat to Your Portfolio
(and Global Markets)
By www.ProfitableInvestingTips.com

2. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
Which is the worst threat to your
stock portfolio (and global
markets), a Greek debt default or
a Chinese stock market
meltdown?

3. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
Two economic situations are
unraveling on opposite ends of
Eurasia.

4. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
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5. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
The Greek people have voted
“no” to more austerity measures
in return for further debt relief.

6. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
The seemingly miraculous
Shanghai stock market has lost a
quarter of its value in the last
month.

7. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
Which is the worst threat to
global markets?

8. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
China obviously has a larger
economy than Greece but if the
Greek situation damages the
European Union that will affect
one of the two super economies
in the world (North America and
Europe).

9. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
The Chinese Market
Meltdown

10. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
The Chinese economy is cooling
but that is not the immediate
problem.

11. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
The problem for China is debt.
Similar to Japan in the late
1980s, many Chinese companies
are deep in debt and much more
fragile than one might expect.

12. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
The Chinese stock market is
dominated by mom and pop
investors who have all too often
borrowed money to invest as the
Shanghai market went up 150%
in a year.

13. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
But anyone who invested late has
lost money as the market has lost
a quarter of its value (eleven
years of Greek economic
production) in the last month.

14. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
And there is more to the market
rout in China.

15. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
The New York Times talks about
a double threat.

16. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
For nearly three years, President
Xi Jinping of China has crushed
opposition by silencing and often
locking up anyone who dares
defy the government.

17. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
But that aura of invincibility has
been shaken by stock market
speculators who have made a
mockery of efforts to halt a steep
slide in share prices.

18. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
The losses – Chinese shares
have shed more than a quarter of
their value in three weeks – pose
an added risk, and possibly
greater danger, to a global
economy grappling with Greece’s
difficulties in repaying foreign
loans and its possible exit from
the euro.

19. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
About $2.7 trillion in value has
evaporated since the Chinese
stock market peaked on June 12.

20. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
That is six times Greece’s entire
foreign debt, or 11 years of
Greece’s economic output.

21. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
The underlying issue in China is
that the Communist party seeks
to project an aura of invincibility
in order to maintain control.

22. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
A significant economic downturn
coupled with loss of savings
across a broad spectrum of
Chinese society could lead to
social upheaval.

23. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
That would be a worse threat to
global markets that a Greek
economic decline.

24. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
Is This about Greece or
the EU?

25. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
Greece has a small economy
compared to China but the
European Union is a far larger
economy than China.

26. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
It is the integrity of the European
Union and the European
Monetary Union that is of concern
when investors worry about the
Greek debt crisis.

27. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
Thus USA Today reports
that U.S. shares as well as
global markets opened lower
after news of the Greek vote
against more austerity measures.

28. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
Wall Street stocks followed global
markets lower after the opening
bell on Wall Street Monday after
voters in Greece yesterday
rejected austerity plans
demanded by international
creditors, casting doubt on the
country’s future in the euro zone.

29. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
The effects of a Greek exit from
the EU and monetary union
would be less than a full Chinese
market meltdown.

30. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
But the concern is that a Greek
exit sets an example the might be
followed by other southern tier
nations of the EU.

31. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
How about Your
Portfolio?

32. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
You might be invested in Greek
bonds or have ADRs of Chinese
stocks.

33. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
If that is the case you may be in
for some losses.

34. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
But the overall concern is a drag
on the global economy and that is
the worst threat to global markets
as well as your portfolio.

35. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
If Europe and the Euro suffer
from a Greek exit there will still
be strong European stocks.

36. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
There was a drop in European
markets but no panic on news of
the Greek “no” vote according
to Bloomberg.

37. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
“Greece is not a driver of the
equity market as it was in 2012,”
said Tristan Abet, a strategist at
Louis Capital Markets in Paris.

38. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
“Today in 2015, there is no longer
systemic risk.

39. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
The ‘cyclical upswing’ in the rest
of Europe is intact and inflation
rates are recovering.

40. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
It is not really necessary to buy
protection because markets are
resilient.”

41. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
Even if Greece leaves the EU
companies like Siemens and
Roche will continue to sell
globally and will benefit from a
cheaper Euro.

42. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
However, if things go from bad to
worse in China, industrial
equipment orders will fall and that
will hurt the Germans.

43. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
If China reduces raw material
imports it will affect many
developing nations.