When Stocks Sell Off, Everybody Wants to Know Why

    STAMFORD, CT, August 21, 2015 /24-7PressRelease/ -- The recent volatility of the stock market and the active sell-off last week demanded an explanation from Bottom Line's Money Masters Stock Report editor Dr. Vahan Janjigian, PhD. Janjigian, celebrated money manager recognized as one of the world's best stock pickers noted the recent sharp selloff in global stock markets, including US markets, has been blamed on the plunging Chinese yuan. He believes in reaction to concerns about its slowing economic growth, the Chinese government deliberately allowed the yuan to weaken.

According to his latest blog post at Bottom Line's Money Masters Stock Report, Janjigian explains "that China's economy is extremely dependent on exports and a weaker yuan makes Chinese goods cheaper for Americans." He continues, "On the other hand, a weaker yuan makes American goods more expensive for the Chinese, which hurts various US exporters."

Janjigian believes the benefit of a cheaper yuan to United States consumers outweighs the cost to United States exporters. The reason he cites is that the United States imports so much more from China than they export. He noted that in 2014, total imports from China amounted to $482 billion while total exports to China amounted to just $167 billion. While that export amount is not trivial, it comes out to less than one percent of the United States GDP.

Janjigian also states in his Bottom Line's Money Masters Stock Report blog that there have been concerns for some time that China's economic growth is slowing. Because China's government is allowing the yuan to depreciate, investors reason that the slowdown must be much worse than they initially thought. Their fear has contributed to the selling of United States stocks.

"It would be odd, however, for China's currency moves to trigger the long-awaited correction in the US markets. But when stocks sell off, investors want something to blame. The Dow is about 5% off its high. The S&P is only 2% from its high. That means stocks will have to go much lower before we have that official correction. While I can't be sure what will trigger the next round of selling, I am sure that something will. But when the correction finally happens, we should see more buyers coming out of the woodwork," concludes Janjigian.

Bottom Line, a legend in publishing, best known for its expert-driven financial and health content, debuted of the company's most specific, most easy to use investing publication several months ago. Bottom Line's Money Masters Stock Report provides specific research and stock recommendations each month and regular portfolio updates. More information about Bottom Line's Money Masters Stock Report and about Dr. Janjigian is available at BLMoneyMasters.com.

About Bottom Line's Money Masters

Bottom Line's Money Masters Stock Report is a value-driven investment newsletter from the publishers of Bottom Line Personal, the #1 source for expert answers to life's many challenges. Money Masters editor Dr. Vahan Janjigian was the #1 rated stock picker tracked by Hulbert Financial Digest from 2002-2012. Bottom Line Personal, America's leading consumer newsletter, is published by Boardroom Inc. Hear more from Dr. Janjigian and learn more about Bottom Line's Money Masters Stock Report at http://blmoneymasters.com

About Vahan Janigian

Vahan Janjigian is editor of Bottom Line's Money Masters Stock Report, former editor of the Forbes Special Situation Survey, and the stock picker ranked #1 by the Hulbert Financial Digest for the decade ending Dec. 31, 2012. Dr. Janjigian also serves as Chief Investment Officer at Greenwich Wealth Management, LLC, an SEC Registered Investment Adviser, where he manages portfolios for private clients in separate accounts. Dr. Janjigian appears as a guest commentator on various television and radio networks, including Fox, CNBC, MSNBC, and CBS Radio.

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