Now you see it, now you don’t: Yesterday’s market panic is already dissipating

“The market did what now?”
“The market did what now?”
Image: AP Photo/Seth Wenig
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Just yesterday it felt, to anyone paying attention to the markets anyway, like the world was ending.

Chinese stocks were tanking, and the People’s Bank of China didn’t seem to be doing enough about it, leading investors around the world to get out of the way of whatever might be coming down the pike.

Chinese stocks are still tanking today (Aug. 25), but now China’s central bank seems to be doing something, cutting interest rates for the fifth time since November. Whether that’s enough to give juice back to China’s slowing economy will take some time to shake out, but western investors are looking upon the news with a fair amount of optimism.

In Europe, equities erased most of Monday’s rather steep losses.

And US stocks are mounting their own comeback campaign of sorts.

If you had avoided the temptation to sell into the distress, yesterday now looks like a minor blip. And had you sold in May and were still away, all the better.