• Mark Cuban’s Top Tip To Investors After China’s ‘Black Monday’ Beating

    Billionaire investor Mark Cuban has delivered some sage advice to stock holders during a day of turbulence in global markets and on Wall Street. In short: Do nothing.

    “If you don’t know what you’re doing, or you think you do but you can’t afford to lose your stake holdings, do nothing,” said Cuban. He added that the problem for investors in the current market was that “there are so many smart people with so much money chasing so few opportunities, that there are no hidden opportunities anymore.”

    The financial world was rocked Monday by plummeting markets from Shanghai to New York. The Dow Jones lost 1,000 points in early trading as equities and commodities took a beating after China’s ‘Black Monday’ spooked traders over the health of global growth.

    Although the Dow fell six percent in the early part of the day there was a partial recovery with the index closing down 585 points. 

    Global markets lost ground after the Chinese government failed to make clear what steps would be taken to shore up the country’s ailing growth rate. If China’s economy starts to sink the world economy will feel the impact.

    After one of the rockiest day’s trading in years, Cuban took to messaging app Cyber Dust — which he owns — to advise investors on how to react as well as giving his analysis of the day’s events.

    Using the app, Cuban said he would be “looking to buy high-yielding stocks that have overcorrected.” Cuban added that he would be looking for “bloodbaths caused not by the company, but by de-levered sellers.”

    The Shark Tank star criticised China’s hubris for believing they had control of the situation and said “we are seeing the consequences of both issues come to roost right now.” Cuban put the blame for day’s events squarely with China saying people should realize that its economy is by a Communist party “that is new to all this.”


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