Wall Street rocked by China's woes

Aug 24, 2015

Monday's rocky ride on Wall Street is nothing for long-term investors to worry about, according to expert Cristian Tiu.

The Dow Jones industrial average dropped over 1,000 points at the open. After a day of massive swings, it ended up closing down 588 points.

Credit File photo

An Associate Professor of Finance at the University at Buffalo, Tiu says he does not expect the volatility to last for an extended time. But he says China does not exactly know what to do about its slowing economy.  
"I think they're running experiments on how to do it and as soon as they figure out a way, then the volatility will go back to normal levels," Tiu said.

Tiu says the volatility is also being caused by a possible interest rate hike next month by the Federal Reserve.

He says he is curious why people worry when prices fall, but not when the market rises unexpectedly.