From Jim Rickards, Editor, Currency Wars Alert:
Is Trump’s anti-China rhetoric going to trigger another currency war with China? If so, China may jump out ahead and devalue the Chinese yuan.
In that case, the Dow Jones Industrial Average could plunge to 17,824, and the S&P 500 could plunge to 2,024 in a matter of weeks, wiping out trillions of dollars of investor wealth.
This is not guesswork. Plunges of over 10% in U.S. stock indices happened twice in the past year-and-a-half. The first time was in August 2015. The second was January-February 2016. Both times it was because of a combination of a stronger dollar and weaker yuan. It could happen again. And you need to understand the dynamics both to avoid losses and reap big gains by positioning ahead of the meltdown.
Here’s a quick synopsis:
China is struggling under the weight of too much debt, poor demographics,