From the top 10 Sovereign Trading Funds - 4 are Chinese!! - Markets are about to crash
Chinese investment in the US stocks is bigger than any other nation out there.
Chinese money over the past years hasn't just inflated the global real estate
market, but the global equity markets as well. From the top 10 sovereign funds, 10 are Chinese, that is an immense amount of capital we cant even comprehend. (Hong Kong Fund is also under Chinese ownership)
A trade war in between the USA and China, where China is owning a huge share of equities on the American Market,
is going to have immense consequences if a stock sell off is initiated, we have never seen a scenario like this before.
Never before, in the history of trading, has a foreign country owned so much american equities with an inevitable trade war at hand.
I myself will go into safety of cash, wait for half a year, and make use of the new opportunities, once these guys are done alpha barking.
Not financial advice, doing this for fun, have a good one
Renej,
Chinese Government investments in US Treasuries is larger than any other country. No need to go to trade war, they just need to threaten to sell US Treasuries. That would do so much more damage than a retaliatory tariff.
News reports have already mentioned this. They call it the Chinese "Nuclear" option. No, has nothing to do with Nukes, but with US Treasuries they own.
What's the take away from this topic? Don't get into debt. You become an indentured servant to the debt holder. Be debt free, or if you are not, work towards doing so.