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Worst Threat to Your Portfolio
(and Global Markets)
By www.ProfitableInvestingTips.com
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
Which is the worst t...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
Two economic situati...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
Before We Continue…
...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
The Greek people hav...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
The seemingly miracu...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
Which is the worst t...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
China obviously has ...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
The Chinese Market
M...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
The Chinese economy ...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
The problem for Chin...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
The Chinese stock ma...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
But anyone who inves...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
And there is more to...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
The New York Times t...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
For nearly three yea...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
But that aura of inv...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
The losses – Chinese...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
About $2.7 trillion ...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
That is six times Gr...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
The underlying issue...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
A significant econom...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
That would be a wors...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
Is This about Greece...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
Greece has a small e...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
It is the integrity ...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
Thus USA Today repor...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
Wall Street stocks f...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
The effects of a Gre...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
But the concern is t...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
How about Your
Portf...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
You might be investe...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
If that is the case ...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
But the overall conc...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
If Europe and the Eu...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
There was a drop in ...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
“Greece is not a dri...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
“Today in 2015, ther...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
The ‘cyclical upswin...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
It is not really nec...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
Even if Greece leave...
http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global-
markets
However, if things g...
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markets
If China reduces raw...
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Worst Threat to Your Portfolio (and Global Markets)

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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

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Worst Threat to Your Portfolio (and Global Markets)

  1. 1. Worst Threat to Your Portfolio (and Global Markets) By www.ProfitableInvestingTips.com
  2. 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. 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. 4. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global- markets Before We Continue… Click the links below to get your FREE training materials. Free Weekly Investing Webinars Don’t miss these free training events! http://www.profitableinvestingtips.com/free-webinar Forex Conspiracy Report Read every word of this report! http://www.forexconspiracyreport.com Get 12 Free Japanese Candlestick Videos Includes training for all 12 major candlestick signals. http://www.candlestickforums.com
  5. 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. 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. 7. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global- markets Which is the worst threat to global markets?
  8. 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. 9. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global- markets The Chinese Market Meltdown
  10. 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. 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. 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. 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. 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. 15. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global- markets The New York Times talks about a double threat.
  16. 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. 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. 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. 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. 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. 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. 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. 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. 24. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global- markets Is This about Greece or the EU?
  25. 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. 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. 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. 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. 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. 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. 31. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global- markets How about Your Portfolio?
  32. 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. 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. 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. 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. 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. 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. 38. http://profitableinvestingtips.com/stock-investing/worst-threat-to-your-portfolio-and-global- markets “Today in 2015, there is no longer systemic risk.
  39. 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. 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. 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. 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. 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.

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