Markets are getting China and oil all out of proportion, and should remember that near-7 percent growth is a good thing while cheap oil stimulates consumption, according to two top strategists.
Steven Wieting, global chief investment strategist at Citi Private Bank, told CNBC's "Squawk Box" that maintaining the current level of hyper-sensitivity to China could end up badly damaging markets.
The rout that wiped $3.2 trillion off the value of stocks around world in the first two weeks of the year was largely due to worries about China's slowing growth, as well as its rollercoaster equities market and opaque currency management. Slumping global commodity prices exacerbated declines.
"We have had a 4 percentage-point decline in global equities for each one percent move in China's currency," Wieting said.
"If you were to extrapolate that, if we had a 25 percent drop in [the yuan], then the future would be worthless. Global equities will be zero."
Moves in the currency markets need to be taken in context as Wietling said other countries have, in the past, depreciated their currencies by as much as 25 percent against the dollar, without seeing similar volatile reactions in their stock markets.
"You realize that in the sell-offs, you get exaggerations of this impact," he said.
The People's Bank of China (PBOC) set its yuan mid-point rate at 6.5646 against the dollar on January 7, the lowest fix since 2011 and the largest daily change in the level of the fix since August 13, according to Reuters data. The move fueled concerns that China was devaluing its currency to support the faltering economy.
China's central bank lets the yuan spot rate rise or fall a maximum of 2 percent against the dollar, relative to the official fixing rate. The PBOC's weaker fix sparked a sharp sell-off in Chinese equities, triggering a circuit breaker that suspended trade just 29 minutes after markets opened, and for the rest of the day shortly after.
The panic spread to other major stock markets, and as China's markets continued to gyrate, and oil continued to slide, indexes around the world see-sawed for more than a week.