China’s Shaky Economy Has Investors On The Fritz
Start writing a post
Politics and Activism

China’s Shaky Economy Has Investors On The Fritz

Stock market dip—made in China.

11
China’s Shaky Economy Has Investors On The Fritz
Carlo Allegri / Reuters

Summertime and the livin’ is uneasy.

Monday, Aug. 24 marks the day that sent the Dow Jones industrial average down a whopping 1,089 points, just following the opening bell signifying a new day in the Stock Exchange. If you’re anything like me (allergic to numbers and the idea of the stock market), you’re probably wondering what this means. In layman’s terms, the global economy is possibly in trouble.

In a recent attempt to lower the value of their currency, China has basically freaked everyone out. While China claims to have devalued the Yuan in order to make their currency more financially competitive with other countries’, the backlash has caused rise to some concern. Will other countries retaliate, lowering the value of their own currencies? Will lower export prices create more competition between American and European markets? And how does this tie in to the American dip in stock value shown Monday?

With the presence of financial uncertainty in the air, investors are quick to pull their money in fear of losing a good chunk of change. Too much panic results in lower stock prices, which then opens the door for more fear. In the end, as long as investors stand firm on their investments, the stock market should be fine.

The small correction seen Monday should raise some eyebrows and keep shareholders on their toes to the fluctuating market, but the recent dip does not signify the next Black Monday. On Oct. 19, 1987, the stock market showed a 22.6 percent decrease, making Monday’s 6.6 percent decrease seem like nothing but a hiccup compared to investors’ historical worst nightmare. Additionally, within hours of the initial plummet, stock prices climbed their way back up showing some resilience in the system.

American stockholders should rest calmly with their faith in the system. Stock trading is a gambling game. When you get involved, you have to expect to lose some before you can win some. It’s the dicey decisions that have the potential to send us spiraling back into a depression.

Report this Content
This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.
Featured

27 Hidden Joys

Appreciation for some of life's most discredited pleasures.

27619
Best Things in Life

Life is full of many wonderful pleasures that many of us, like myself, often forget about. And it's important to recognize that even on bad days, good things still happen. Focusing on these positive aspects of our day-to-day lives can really change a person's perspective. So in thinking about the little things that make so many of us happy, I've here's a list of some of the best things that often go unrecognized and deserve more appreciation:

Keep Reading...Show less
beer on the beach

Summer is hot and humid, and it's almost like summer was made specifically to drink the refreshing, cold, crisp wonderful, delicious, nutritious nectar of the gods. Which is none other than beer; wonderful cold beer. With summer playing peek-a-boo around the corner while we finish up this semester, it's time to discuss the only important part of summer. And if you haven't already guessed, it's beer. There are few things I take more seriously than my beer, in order are: sports... and beer. Here are my favorite summer brews:

Keep Reading...Show less
Featured

7 Reasons SoCal Rocks!

75 degrees and sunny, plus, no humidity. I mean do I really need to say more?

1941
woman in black and white long sleeve shirt carrying girl in red jacket in Venice beach
Photo by Jeff Hopper on Unsplash

SoCal summers are the best summers by far, and honestly, no argument is needed. But, if you aren't sure why SoCal summers are the best, here are 7 reasons why!

Keep Reading...Show less
Entertainment

25 Lyrics for Selfie Captions

Because let's be honest, we all use lyrics.

54047
woman takes a selfie for social media
Pixabay

Sometimes you can't think of the perfect caption for your Instagram post. I love using lyrics as my captions because there's so many great lines in songs that just seem to fit in the moment. Here are some lyrics that could work for your selfie or pictures of you with your friends!

Keep Reading...Show less
Entertainment

Bruce Springsteen's Top 7 Lyrics

Everything Bruce says in his classic rock songs.

20550
bruce springsteen album cover born in the usa

Anyone who was born and raised in New Jersey (or anywhere really) knows of Bruce Springsteen, whether or not they like him is a whole other situation. I hope that his hundreds of classic rock songs and famous high energy performances, even in his sixties he can put on better concerts than people half his age, are at least recognizable to people of all ages. Love him or hate him (I identify with the former) you have to admit that some of his songs and interviews have inspirational quotes and lyrics.

Keep Reading...Show less

Subscribe to Our Newsletter

Facebook Comments