Dips in the Markets

Yesterday was a very interesting day in the world stock markets. The Shanghai stock market dropped over 8%, marking one of the biggest sell-offs in the market in the past 10 years. This caused a lot of havoc amoung investors as shareholders in Chinese companies, or investors in companies with shares in the latter, began to re-evaluate that section of their portfolio. A lot of cash yesterday tended to convert into bonds. Today was slightly better in the markets as they started to recover. The markets will likely continue to recover in the next couple of days.

I don’t have a lot of investments right now considering I’m spending most of my money on school, but I do keep track of a few. I personally wouldn’t invest in emerging markets such as China because frankly, they’ve been doing too well. I’m more interested in the American and some of the European markets that have some promising Web 2.0 companies.

If you actually look at the performance of the markets at the beginning of the year, they are almost identical to after the drop in the Shanghai markets. This isn’t so much of a drop in the markets. The markets are just starting to even out. I wouldn’t be particularily worried with my portfolio if I was in the market.