January 7, 2016
The stock market took a tumble Thursday as China’s stock market dropped 7 percent overnight and crude oil prices dropped to their lowest level in more than a decade. But what does that mean for investment portfolios?
“They are in a unique situation where they’re a Communist government, but trying to have a capitalist economy. So it’s a unique mix of central planning and free market,” Battle said. “Their stock market is only 25 years old, so they’re still learning their way around it. Up until cancelling it today, they had what they called a circuit breaker system, which is their regulatory control to curb volatility in the stock market. Circuit breakers are supposed to be a market stabilizer, but closing down the stock market is having the opposite effect. … It’s alarming investors around the world.”