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The biggest contagion risk to U.S. stocks isn’t Turkey — it’s an already-deteriorating China

August 15, 2018

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Recent events in Turkey have reminded investors of the contagion risk coming to the U.S. stock market from abroad.

However, the biggest potential contagion is 14 times bigger than Turkey and deserves investors’ attention. Let us explore with the help of two charts.

Two charts

Please click here for the annotated chart of Xtrackers Harvest CSI 300 China A ETF ASHR, -4.78% That’s an exchange traded fund for mainland China.

Please click here for the annotated chart of Chinese currency renminbi CNHUSD, -0.7095%

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