World Markets

This is how World markets looked like yesterday:

Toronto = 2.75% Down
Dow = 3.3% Down
China = 9% Down

It started when Chinese authorities stated that they will be implementing a new capital gains tax. International stocks of all types plunged because of huge selling pressures. This sudden drop in China came as a surprise but it was long overdue. Shanghai index went up 130% in 2006 and it was expected that there will be corrections. In markets, there will always be ups and downs and one day plunge like yesterday but this type of sudden drop should not worry real investors. Investors, who are too nervous and make decisions without thinking, suffer most. Things change but the basics about investing remains the same. Never pull back if you see global downturn like this. Always stick to your plans for the long term and don’t let fear take you over. In the middle of difficulty lies opportunity. After Tuesday’s plunge, shares have already posted a 4% gain on Wednesday. Things came to normal when Chinese authorities vowed not to impose capital gains tax after all.