Matthews Asia: Times Like This – The China-U.S. Market Turmoil

Times Like This - The China-U.S. Market Turmoil by Robert Horrocks, PhD, Matthews Asia

Times like this in the markets can be unsettling. We are accustomed to dealing with risk, that is to say we are familiar with “normal” market swings from year to year. But when there is a sudden abrupt fall in markets, investors may find themselves at a loss. This is not about risk, as such, but about uncertainty: “What is going on?”

To answer that question, we reach for times that seem familiar to us to try to make sense of what is happening and what the immediate future might hold. But we also need a logical framework within which to guide us—to show us...