4. WHAT LESSONS CAN INVESTORS LEARN FROM THIS?
For one, it's a reminder that stock markets can and do swing wildly, and should be viewed as long-term investments for people with a tolerance of risk. After an uninterrupted four-year rise by U.S. stocks, ''I think people have forgotten that equity markets go down as well as up,'' said State Street's Heinel. Another lesson is that China's stock market has become big and closely watched. Though it's a poor indicator of China's well-being, and most of the world is shut out of it, investors need to know more about it. (Reuters)