The news of China dumping billions in U.S. Treasuries from its massive holdings has left some stock market investors wary, wondering what the impact will be. This is smart, as astute stock market investors should take a moment to understand how this impacts the whole financial “chessboard.” The economic reality is that nothing happens in a vacuum. So China’s actions have the potential to trigger a domino effect, and this can indirectly impact the stock market through a connected web of related and seemingly unrelated factors.
Here are seven top concerns that have some U.S. stock market investors positioned with one finger on the sell button.
How China’s Selling Could Increase Interest Rates
A mass exodus by China from U.S. Treasuries could create a sudden surge in bond yields. This would result from the increase in supply from China’s sales without offsetting increases in demand. This is important for the stock…
