A Credit Suisse report considers the world economic picture and is concerned about China and its currency, voicing speculations that “Chinese authorities risk ‘losing control’ of the economy.” The impact of China on the world economy, a hot topic particularly as global markets have crumbled year to date, could ultimately lead to “substantial implications across the investable universe.” In particular, this could impact a U.S. Federal Reserve interest rate hike under a worst case analysis. The report starts off stating: Our central scenario remains for a further controlled moderation in Chinese growth this year; however, we think that the risk of a…
Credit Suisse Warns Chinese Authorities Risk Losing Control, Hard Landing Possible
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.