Chinese stocks fell the most since February on Monday thanks to trade and diplomatic tensions.

And while China says it is not afraid of a trade war, the signs are starting to point to otherwise.

Then move west to Italy and things almost seem worse.  The interest rate on their 10-year bonds hit 3.58% -- that's the the highest in 5 years.  Plus they are carrying a whopping $2.6 trillion in debt and asking for more.

So you have to wonder how this all will affect our markets here at home. With the after-affects of the tax cuts essentially baked in, the midterms elections on the way and the potential for another interest rate hike from the Fed, you have to be wondering what to do with your portfolio.

So we asked London Bureau Chief Martin Baccardax, who happened to be in town, about the risks of all if it.

Watch now!