Recent stock market fluctuations have investors across the globe nervous, but a University of Toledo economist says there is no need to worry.

All eyes are on China, the world’s second-largest economy, with concerns that a sharp slowdown could hurt economic growth across the globe. Between June 2014 and June 2015 China’s Shanghai Composite index increased by 150 percent, which is proving to be an unsustainable boom.

“The Chinese stock market was a bubble that was due to burst,” said Dr. Gbenga Ajilore, associate professor of economics at UT.

U.S. stock markets took a drastic drop in early trading Monday morning, with the Dow falling more than 1,000 points. By midday the Dow was only down 180 points, about 1.1 percent. This morning, the market jumped more than 350 points.

“The best thing people can do is ignore the stock market this week,” Ajilore said. “The U.S. stock market has been steadily increasing for the past three years and it was due for a correction. The issues with China, however, will persist for some time.”

To schedule an interview with Ajilore, contact Aimee Portala at 419.530.4279 or aimee.portala@utoledo.edu.

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