“China is the world’s second-largest economy next to our own. They are a huge trading partner, and our two economies are incredibly intertwined,” Robert Mittelstaedt says, dean of Arizona State University’s W.P. Carey School of Business.
Although the US economy is the largest in the world, the United States, like many other countries, has also been affected by the Chinese economy’s decay. “The big impact on us is that China’s economy is maturing. I’m not sure they have any more ability than us to set their growth rate, but the idea that they’re looking at less growth shouldn’t be surprising,” says Mittelstaedt.
Indeed, last week, US stocks reached its lowest level since August 2014. In addition to this, the decline in the price of oil makes the performance of the U.S. stocks the worst since 2008.
Nevertheless, the United States’ economy is probably going to improve during 2016 (as seen on the map), which means that the US market has not completely dropped.
by Hugo B.