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Beware! Two ‘black swans' may come out of nowhere & kill stocks this summer, experts warn


Added 06-16-19 04:37:02am EST - “Beware! Two ?black swans' may come out of nowhere & kill stocks this summer, experts warn” - Rt.com

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Posted By TheNewsCommenter: From Rt.com: “Beware! Two ‘black swans’ may come out of nowhere & kill stocks this summer, experts warn”. Below is an excerpt from the article.

He told Yahoo Finance: “If tariffs [on China] go up to 25 percent and there is an adjustment in the [Chinese yuan] and it moves much more sharply, that could be very de-stabilizing for global capital markets – that, to me, is a very real, clear and present danger.”

Knapp added “That would trigger outflow pressures from China, de-stabilize their domestic system.”

The Chinese currency has plunged in value since the escalation of trade tensions between Washington and Beijing late last year.

According to Knapp, a fresh round of US tariffs on another $300 billion in Chinese imports could further hammer the yuan and trigger massive outflows of investments in the country. That would probably cause a whole lot of selling in stocks globally, he said.

While Knapp points to the yuan’s weakness as a potential destabilizing event for world markets, veteran strategist Scott Clemons at Brown Brothers Harriman warns of a surprise uptick in inflation.

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