China Matters

Markets effect markets, If China is down 7% there is a good chance there is going to be red markets across the boards. People ask why does China matter? Why does it matter to USA or Europe or any other country? When people are fearful, markets sell off, and no market is save. If you look at the two charts we posted. On the left is the FXI or the etf that tracks the overall Chinese stock market. While the chart on the right is the SPY or the etf that tracks the S&P 500. As you can noticed the charts more or less traded in tandem, If china is going to effect our market, we need to take notice plain and simple.