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Daniel has made some very astute comments. The event in China is symptomatic of a young market dominated by exuberant investors with gambling mentality, As such the partial bursting of the bubble could not have come at a better time. Let's not forget China is still growing albeit at a figure lower than what everyone would like. However a steady (low) growth rate is far more sustainable long term than the head long dash in the past few years. The panic reactions of the DM investors reflect their fragile confidence and uncertain future expectations. This week's event demonstrates the importance of investing in good companies, be it bonds or equities. No matter what happens, we still eat, sleep and the rhythm of living continues. Let's stop and think of the real reasons for our investments and if these may have changed because of lower commodities, rising interest rates etc before we fall for the instant risk on risk off routine.