August 4, 2015
DFA's perspective on China and its impact on global equity markets
While we've corresponded with you about Greece and its impact on global markets in our recent newsletters, another country has also been contributing to the volatility in world markets lately. China has seen its stock market more than double since mid-2014, only to see it lose 30% of its value just last month.
Below is an article from DFA summarizing what's been going on with China and its stock markets, why this is newsworthy, and why this has increased volatility in global markets.
We thought you might find this interesting. As far as the impact of this on your portfolio, we agree with the takeaway points in the final paragraph of the article that the best course of action is to maintain diversification and discipline, and to remember that markets accommodate new information instantaneously.
If you have any questions about the volatility in China's stock market, your investment planning or overall financial planning, please let us know.
Thank you, and we hope you enjoy the rest of the Summer!
Please click on the link below for the article: