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A China stock market crash this summer triggered a global sell-off. The country’s benchmark index, the Shanghai Composite, lost 12.5% in August alone. It declined a massive 37.94% (1,960.36 points) from its June 12 high through the end of August.
Global markets suffered in kind. For example, on Aug. 24 – "Black Monday" – China's stock market crashed 8.49%. That day, Japan's Nikkei tumbled 4.61%, Australia lost nearly 4.09%, and markets across Europe were all in the red by more than 4%. The global rout sent U.S. equity markets into a tailspin. Just after the opening bell, the Dow Jones Industrial Average plunged more than 1,000 points in mere minutes after the opening bell.
Based on everything the Chinese government and regulators have done to stem the sharp sell-off in Chinese shares and pump them back up – including a surprise yuan devaluation — continued volatility in the world’s second largest economy could signal a serious crash ahead.
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…
Watch the video to get Money Morning Capital Wave Strategist Shah Gilani’s strategy for investors to protect themselves — and even profit — from a China stock market crash:
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