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Editor's pick: Originally published Jan. 14.

The media love to latch onto a narrative and then relentlessly pound it home, until it becomes accepted fact -- even if the narrative is full of flaws and half-truths. For the last several years, the dominant financial meme has been the invincibility of the Chinese economy.

If you heeded some of the histrionic rhetoric on the 2016 presidential campaign trail, you'd think that Red China Inc. is on the verge of burying a weak and complacent America. But the fact is, most of the Chinese economy is still based on highly leveraged fixed investments, while the emergence in the country of a consumer economy that's oriented toward domestic consumption has yet to materialize.

Today, China's economy is like a beautiful home that's built smack dab on an earthquake fault line. When the building collapses, it will take a wide swath of overvalued and fundamentally flawed stocks with it. But below, we show you three ways to make money on this trend.

To be sure, China has increasingly dominated the world economy by wielding carefully calibrated mercantilist policies. It's now the second-largest economy in the world and this year the International Monetary Fund added its currency the yuan (or renminbi) to its basket of reserve currencies.

But China's serious shortcomings are coming to the fore: state-run "zombie" corporations that are over-leveraged but too big to fail; over-reliance on dubious and massively expensive infrastructure projects to stimulate the economy; endemic corruption on a shocking scale among top leaders; horrific and deadly pollution; low fertility and an aging population; rising wages that make the country less competitive as a low-cost manufacturer...the list goes on.

China's increasingly apparent problems have triggered so far in 2016 a formal correction in U.S. stock markets. But you don't have to sit on the sidelines, biting your nails. In crisis there is opportunity. Here are three inverse exchange-traded funds (ETFs) that will rise in value as China's fortunes decline. They're a safer and surer bet that using risky derivatives or trying to short individual Chinese stocks.

Many overvalued stocks appear poised to collapse in coming weeks. But these ETFs are on track to rise as China falls. Let's look at each fund, in ascending order of risk:

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The ProShares Short FTSE/Xinhua China 25ETF (YXI) - Get ProShares Short FTSE China 50 Report

This ETF seeks a daily performance that corresponds to the inverse (-1x) of the daily performance of the FTSE China 50 Index. The latter is comprised of 50 of the largest and most liquid Chinese stocks listed on the Hong Kong Stock Exchange. Net assets: $8.75 million.

Year-to-date return of YXI is 3.87%. Over the past year, it has returned 21.24%.

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The ProShares UltraShort FTSE/Xinhua China 25ETF (FXP) - Get ProShares UltraShort FTSE China 50 Report

This ETF seeks a daily performance that corresponds to twice (-2x) the inverse of the daily performance of the FTSE China 50 Index. Net assets: $61.36 million.

YTD the fund has been essentially flat. Over the past year, it has gained 34.83%.

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The Direxion Daily China Bear 3X ETF (YANG) - Get Direxion Daily FTSE China Bear 3X Shares Report

This ETF seeks three times (-3x) the inverse of the daily performance of the FTSE China 50. Net assets: $62.63 million. YTD the fund is down 12.99%. Over the past year, it has gained 36.92%.

The expense ratio for all three is 0.95%, within the average range for ETFs. Keep in mind, as with any leveraged fund, these three ETFs rebalance on a daily basis. Consequently, their returns can deviate from their underlying indexes. But the dynamic remains the same: as China goes down, these funds will go up.

The S&P 500 is now officially in a correction (a decline of 10% or more). If you want to see a list of the absolute worst stocks you can own in this volatile environment, I urge you to take a look at this report called 29 Dangerous Stocks: Sell Now! Inside, you'll see a full list of the market's most overvalued stocks, and learn the process you can use to keep avoiding them in the future. Click here now for a copy.

John Persinos is editorial manager and investment analyst at Investing Daily. At the time of publication, the author held no positions in the stocks mentioned.