China’s slowing economy isn’t what has caused stocks to slide. Watch.

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China’s economy has been slowing for well over five years.

The S&P 500 is up 75% over the last five years.

Over the last three months the S&P is down -7.8% because “China’s economy is slowing down?”

This makes no sense.

China’s economy has been slowing down for a long time. That’s not the reason for the slide in stocks.

The real problem is stocks don’t like it when China makes every attempt to prop up their stock market (lowering interest rates, devaluing currency, lowering the reserve requirement) and nothing works.

It’s not the slowing economy, it’s that China hasn’t been able to heal the selloff with their chicken soup for the soul stimulus. Over the last three months they’ve made several failed attempts, and that’s what’s concerning to investors. Not the “slowing economy.” That’s old news. Watch.