3 Reasons Not to Panic Over the Stock Market Plunge | Money.com

A collapse in Chinese stocks pushes Dow down by triple digits—againWomen chat with each other in front of an electronic board displaying stock prices at a brokerage house in Beijing, January 5, 2016. Last year’s Chinese stock boom and disastrous bust has left a legacy of public distrust of financial markets along with a bill the ruling party has yet to disclose for its rescue. The Shanghai index ended 2015 up 9.5 percent for the year, compared with a 0.7 percent loss for Wall Street’s Standard & Poor’s 500 index. But many novices who bought just before the peak are left with shares worth less than they cost.MoreWill China’s Slowdown Derail Your Investments?Blame Politics for China’s Market MeltdownIs It Time to Get Ready for a Bear Market?Here we go again.For the second time this week, concerns about the world’s second largest economy sent Chinese stocks plummeting more than 7%. And for the second time this week, Chinese regulators were forced to halt trading to stem the bleeding.“These market reactions seemed to confirm that China’s economy is in serious trouble,” said Ed Yardeni, president and chief investment strategist at Yardeni Research. They also reverberated around the world.

Source: 3 Reasons Not to Panic Over the Stock Market Plunge | Money.com