4 Ultra-Safe Stocks To Ride Out The Global Economic Storm

The U.S. market is currently bustling with macroeconomic concerns pouring in from all directions. As Wall Street was busy playing the guessing game over the timing of the first rate hike by the Federal Reserve in nine years, the Chinese market equity bubble arose followed by the Greeks' defaulting on their IMF loan.

Needless to say, the European economy’s recuperation seems to be never ending with its strong pillars revealing the cracks underneath. While France, Italy and Spain witnessed modest growth post-stagnation, Germany continued to struggle.

Greece: Thorn in Europe’s Hide

Now Greece is in the spotlight for defaulting €1.5 billion (or about $1.7 billion) to the International Monetary Fund (‘IMF’) and subsequent disagreements with its creditors and ambiguity regarding its solvency and euro membership. Nothing seemed to work in favor of the beleaguered country as it suffered a humiliating loan default to the IMF, similar to nations like Zimbabwe, Sudan and Cuba.

As a last resort, Prime Minister Alexis Tsipras sketched last-minute reform proposals to the European Union to save Greece from the black hole of bankruptcy and probable exit from the Eurozone. Luckily, Greece was able to make a deal with European Union officials just today, and both parties agreed on negotiating a third bailout to avert the “Grexit.”

However, this latest development doesn’t promise a stable economy going forward. Thankfully, the U.S. market has minimal exposure to it and is eyeing the more critically hurt China with bated breath. 

China’s Equity Bubble: A Pin Awaits!

Although Chinese stocks rebounded in Thursday’s trading buoyed by a stream of governmental aid, an apt solution to the inherent problem is still awaited. Over the past one year, the Chinese indices went off-the-charts as its stock market added $6.5 trillion in value. Novice traders are getting deluded into believing that recent overpowering momentum will persist in the future. New account openings in China have multiplied 500% in 2015. In May alone, over 12 million new equity trading accounts were opened in China — a figure which exceeds the entire population of Greece.

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