Frankly Speaking

This Market Volatility is Chinese to Me

The recent drop in the U.S stock market was not an isolated incident. We saw foreign markets around the world dropping in similar fashion. So what was behind all the nervousness? In one word, China. Investors have been worried for some time that the Chinese economy has been slowing down. Since China is a significant part of the world economy investors figure a slowdown may have a ripple effect on other countries that do business with China. But why the sudden reaction to a slowdown that has been unfolding for a long time?