Wednesday 8 July 2015

What is going on in China?

“Stop with the bad news!”

That's the first thing I thought about today when I put finger to keyboard.

Unfortunately, though, you need to keep in the loop with what's going on with China's stock market crash. It will have an effect on your trading results.

You see, early on Wednesday, more than 1200 listed Chinese stocks halted. This means well over 40% of the stocks listed in the entire pool of 2,808 issues were affected. 

The resulting billion dollar meltdown will affect millions of investors. And things are just getting started.

What you can do to save yourself from the Chinese Bubble 

Wednesday, it was the largest trading halt in the history of China’s equity markets. By noon, the Shanghai Composite Index fell 3.9%. That takes it down 16% for a month-to-date loss.

And the same went with Hong Kong’s Hang Seng Index. It fell 4.3% near the afternoon. What’s really worrying is that the U.S- listed Chinese stocks have been falling even faster than the Chinese listed stocks.  This sends the signal to investors around the world that the Chinese economy is in a worse shape than we thought it was.

To support this fear, China’s national debt is sitting at $5.2 trillion. And with a population of 1,3 billion, each citizen will have to theoretically pay $3,879 to get the country out of debt.

Things aren’t looking good for China…

So today, I’m going to address all of your questions you have on the current Chinese crisis and what you can do to protect your trading account.

I trust these questions and answers will help you make wise decisions for how to tackle the markets with the Chinese Bubble bursting as we speak.

Your questions answered:

Are commodities a safe haven while China’s situation worsens?
If there is such turmoil in the markets with Greece and China, should commodities like gold not be seen as a safe haven?
Click here for an analysis on the gold market since 2011.

Is there any reason for investors to get involved with China?
Does China make a good investment destination? Are there any reasons to believe stocks will do well there?
Find out here

How can I invest off-shore!
What’s involved if I want to take my money offshore to invest? How do I do it and what are the limits?
Read here for an easy way to save yourself from being restricted

I need to take my money offshore while China's stock market crashes!

How do I open an offshore account?

  • How do I buy stocks overseas?
  • How do I receive dividends when I buy offshore stocks?
  • Which broker is the easiest to deal with when I want to go offshore?
  • How long does it take to open an offshore account because I'm worried about having my money trapped in this country when there is a Chinese stock market crash as we speak!
Read here for all the answers 

And that's it for this week's mailbag, thank you and ASK AGAIN!
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And always remember, "Wisdom yields Wealth".

Timon Rossolimos
Author:                 94 Top Trading Lessons of All Time
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