The Markets Are Pricing In A 6% Chance Of A Hard Landing In China

According to Goldman Sachs and Societe Generale, everyone's top concern these days relates to China. Specifically, people worry that the reigning in of the credit markets could lead to a disorderly economic slowdown. This could mean that GDP slows to a sub-5% level from 7.7% in 2013. Currently economists see GDP slowing to 7.4%. "Hard-landing risks may be moderate but not low enough to make hedging costs irrelevant," said Viktor Hjort of Morgan Stanley's cross-asset research team. "Uncertainties...