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China

How to Protect Yourself from China's Crashing Stock Market

economic pattern china

Chinese stocks plummeted again yesterday.

The Shanghai Composite tanked 8.48% to 3725.56, while the Shenzhen Composite fell 7% to 2160.09. And the ChiNext, China's smaller equivalent of the Nasdaq, fell 7.4% to 2683.45.

U.S. and international investors need to understand what's going on in China and position themselves to profit on a full-blown market crash there that could ignite global contagion...

Markets "Whistle Past the Graveyard" as Google Gains $65 Billion in Just One Day

Google stock price

While markets decided to ignore what are destined to be doomed attempts to cover over intractable debt crises in Greece and China, the real action in the markets last week took place in two high-flying NASDAQ stocks - Netflix and Google.

Netflix stock split 7-to-1 and the company announced strong subscriber growth, pushing its stock up from a split-adjusted $98.13 on Wednesday to $114.77 at the end of the week. The 18% pop increased its market cap to $48.7 billion and its price/earnings ratio to 210x as Wall Street analysts competed with each other to raise their price targets to ever higher levels.

If you think that sounds giddy, look at what Google did...

Idiocy Knows No Borders

greece crisis

As a veteran investor and hedge fund manager, I've often pursued strategies that feed off volatility. So for me, the type of schizophrenic, up-and-down action that we saw last week was just what the doctor ordered. Unfortunately, for anyone banking on a positive long-term outcome for Greece and the EU, the doctor making orders may well be named Kervorkian.

The "Gridiots" in Europe spent the week torturing a world too fearful (or stupid) to just ignore their idiocy. The dysfunctional and bankrupt Hellenic State will continue to be funded for a couple of more years - after which they'll have to go through this moronic exercise all over again. Having allowed its populace to self-immolate and vote against accepting the demands of its creditors, the Syriza government caved to precisely those demands and now the world will wait to see if the rest of the European governments will be dumb enough to fall for this charade.

Read more....

WARNING: China’s New “World Bank” Threatens U.S. Dollar

china's new world bank

China has just made another strike against the U.S. dollar with a new “world bank” – the Asian Infrastructure Investment Bank (AIIB).

By now 57 countries have been approved to join forces in this $50 billion global economic “superpower” cooperative – and the United States is not one of them.

Here’s what China’s new world bank means for the U.S. dollar in 2015…

Catalyst #4: The Chinese Economy Faces This $5 Trillion Threat

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The Chinese economy – the largest on the planet – faces a $5 trillion threat. And if China’s economy collapses, global markets will go with it.

Watch the video to find out what danger lurks behind the Chinese economy right now more than ever:

Avoid the Spread of This "China Syndrome"

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Stocks were sailing toward new record highs last week until they suddenly came crashing down on Friday. The shift occurred after China took steps to rein in its parabolic market by easing restrictions on short selling and raising margin requirements.

This is what happens when equity investors decide to ignore weak earnings, deteriorating economic conditions and geopolitical chaos and place all of their faith in the ability of central banks and other regulators to bail them out time after time...

Keith Appears on CNBC's Street Signs

big banks

Money Morning's Keith Fitz-Gerald nails China's GDP growth, gives his quick read on big bank's reported earnings, and cautions against taking a short-term view during any earnings season.

Keith's thoughts as he appears on CNBC...

China's Power Gambit Gives Us a Profit Play

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The planet's number two economy is growing more comfortable with its predominance on the world stage.

Despite attempts by the U.S. to dictate other nations' dealings with China, the Middle Kingdom has been establishing new economic and financial institutions to develop its global sway. And it's inviting the world to participate.

Meanwhile, America is staying away and warning others to do the same. But scores of leading nations are ignoring that advice and joining with China.

That's allowing the Chinese to foster deeper, more profitable international relations, and creating new opportunities for globally oriented investors like us...

5 Upcoming IPOs This Week Led by China's Wowo (Nasdaq: WOWO)

upcoming IPOs

There are only five upcoming IPOs on this week's IPO calendar, expected to raise a combined $239 million. Four of the five are delays from previous weeks.

The biggest name this week is Chinese e-commerce giant Wowo Ltd. (Nasdaq: WOWO). The company follows in the tremendous footsteps of Alibaba Group Holding Ltd. (NYSE: BABA), another Chinese e-commerce company that had the largest U.S. IPO of all time in September.

Here's a look at the rest of the upcoming IPOs this week...

China's Yuan Enters the Currency "Big Leagues" to Take on the Dollar

China's yuan

I've been following one of the biggest "stealth" stories of the year: the rise of China's yuan as it gears up to take its place on the world stage.

Towards this very goal, China has taken steady, calculated steps for some time.

It's also no secret that China and Russia have a "special relationship" that will drive this trend.

China is likely to help its neighbor in this time of need, and the longer-term global implications could well be dramatic...

The China Bears Are Dead Wrong

Country China map

When Gannett Newspapers posted me to China in 1996, the Pudong area of Shanghai was just beginning its transformation from swampy farmland and ramshackle wharves into a thriving financial district. Today it's one of the world's key financial centers, home to more than 5 million people, one of the world's tallest buildings, and an international airport.

When Apple shopped for a site for its first Shanghai Apple store, it chose a spot in Pudong.

The Pudong "experiment" has done so well, in fact, that Pudong has emerged as one of China's real financial anchors. Indeed, The Wall Street Journal recently wrote that "today, as worries of a China property crash are back in force, there is an unlikely bright spot: Pudong."

Since 1990, the amount of surface-area construction that's taken place in Pudong is the equivalent of two Manhattans. And while Pudong was conceived as an international gateway, it's actually become a model of how development should take place, as China's economy shifts from one focused on exports to one being driven by domestic spending.

It's nothing short of miraculous...

The Hottest Investment Market on Earth

China has been dominating the headlines in recent days... And not in a good way.

Since late last week, worries about slowing growth, financial-system shenanigans, and the potential for an "Asian Contagion" type spillover have whacked global stocks - and have left folks wondering if the Chinese Miracle is over.

But China's kind of like a still-young tech venture: There are going to be reversals, it's going to be volatile, and it's normal to expect this kind of whipsaw market action.

And let me tell you something else: While it's true that Beijing has some big problems to solve, investors who just write China off are going to miss out on one of the biggest profit opportunities in global technology.

Even as the broader economy there slows (meaning it's still growing - just at a slower rate than before), there's a tech-focused slice of that country's market that continues to advance at a scorching pace.
In fact, if you look at the numbers, I bet you'll agree with my assessment that we're looking at the hottest investable market on earth.

Today I'm going to tell you all about this market... and I'm going to show you exactly how to play this for maximum gain. Full Story

The Golden Yuan Is Coming – Here's How to Play It

The U.S. dollar has been the world's de facto reserve currency for almost 90 years.

But this financial dominance may be nearing its end.

In recent years, China's been floating the idea the yuan should take on the dollar's role as the world's reserve currency.

In fact, the Chinese have already negotiated numerous bilateral trade deals that completely bypass it.

And they've even called for efforts to "de-Americanize" the global economy.

Whatever happens, China's economic rise foreshadows increased influence.

It's a trend that not only has serious implications, but also great profit opportunities, if you know what to expect...

China Calls for a "De-Americanized World"

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Yesterday (Monday), Money Morning Chief Investment Strategist Keith Fitz-Gerald appeared on FOX Business' "Varney & Co."to respond to China's newly released blast on U.S. foreign policy.

The statement was released in Chinese state-run media yesterday. It calls for a "de-Americanized world," and that's not all.

To continue reading, please click here...

Keith Fitz-Gerald Sheds Different Light on China’s Economic Growth Forecasts

Keith-Fitz Gerald china economic growth

We've heard reports of a slowdown in the Chinese juggernaut. Forecasts have shown that China's economy will grow by "only" 7.5% in the second quarter of 2013.

Europe is already in a recession, and America's own economic growth is wheezing along at less than 1% this quarter.

Is the media hype about China's economic growth slowdown overblown, or will it have real fallout for the United States and Europe?

Money MorningChief Investment Strategist Keith-Fitzgerald speaks with FOXBusiness' "Varney & Co."about what these figures really mean for the global economy. Watch the following video for the answer.

To watch the video, please click here...

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