Dow down 416 pts! - Why

Over the weekend, Chinese Investors began to sell their stocks because they were concerned that the government would increase the interest rates, in an attempt to slow down China's fast-paced economy. China produces most goods used in America today. For this reason, "the U.S. and Chinese economies have become co-dependent on each other." Therefore, the U.S. investors followed the trend and began to sell their stocks.

All of these famous declines were caused by big sell-offs. The Dow dropped about 90 percent during the Great Depression, about 22 percent in 1987 and about 9 percent during the 9/11 attacks. In my opinion, I think it is best to buy a good amount of stock now that the stocks are low because in a way, there is no where to go but up. The stocks have become very cheap lately so if enough people start buying stocks again, the value of the stocks will rapidly increase. Therefore, I am going to buy a few penny stocks.