The latest article by Daniel Satchkov, president of RiXtrema, published in ThinkAdvisor magazine raises important questions about the recent crash in the China Stock Market:
1) What is driving these extreme losses?
2) Is the worst over for China?
3) What could be the impact in the U.S.?
While most financial advisors are getting these questions from their clients nowadays, the answers in the article go deeper than the standard story suggested by pundits on CNN that a drop of 0.3% in China corporate profits is responsible for this bloodbath. This crash is not a Black Swan that no one could predict but is driven by the leverage build-up that consists of visible and invisible parts. And this trouble is not over….
To read the full article go here: http://www.thinkadvisor.com/2015/07/27/how-to-explain-chinas-stock-market-crash-to-your-c
