Although the Shenzhen and Shanghai stock indices have sprung back since February 2018, the sudden drop raised anxieties in some countries that the economy of China might fall off a cliff. However, there have been exaggerations on the dire situation. According to an article published by Stansberry Research, the external environment has never been as favorable as it is since the recession of 2008.
In the United States, the primary issue is the growth of wage figures that always come in at beyond expectations, provoking fears over inflation and potential hawkish moves by its Federal Reserves. Such a situation can create commotion in the stock market but experiencing a crash is very unlikely due to the underlying strength of the economy of the US. In the same way, Europe seems relatively stable with its debt crisis and the Central Bank of Europe is deliberating on whether to pare down quantitative easing.
All these realities indicate that there’s very little straightforward evidence of global economic conditions deteriorations. China also is enjoying a swift phase of development. The main concerns in the domestic economy of China revolve around the corporate debt burden, non-performing assets, real estate, industrial overcapacity and overheating high leverage in their financial system. So, the economy of China will continue developing in the global economy steered by the market economic principles. Therefore, it’s improbable that it is going to crash, a likelihood that would put the entire world in jeopardy.
Stansberry Research, formerly known as Stansberry & Associates Investment Research is an independent investment research company founded in 1999. Besides his editorial role, the founder of the firm, Frank Porter Stansberry creates opinion articles in various financial publications discussing controversial and diverse subjects ranging from the European financial panic to the auto bailout among others.
The other public information efforts by Stansberry include a 2012 endeavor focusing on restructuring American governance entitled of “The Project to Restore America,” as well as the production of “The End of America,” a 2011 infomercial. Porter Stansberry is the editor the Investment Advisory at Stansberry and the founder of the Stansberry Research. Before the inception of Stansberry Research back in 1999, Porter was the very first American editor of The Fleet Street Letter, the oldest financial letter in the English language.