"Sell everything but high-quality bonds"

The risk of a global market panic caused by China's equity and currency market volatility is increasing, say market strategists, with UK bank RBS advising clients to offload “everything except high-quality bonds”. As investors try to figure out how to position themselves after one of the worst starts to the year in history, they are focusing on what they perceive as toxic effects being caused by structural weakness in China’s equity and currency markets. In an environment where …