China's stock market plunged to its biggest drop in more than a decade Tuesday, with the Shanghai Composite Index falling nearly 9%.
The precipitous decline came immediately after Chinese stocks closed at a record a day earlier, which begs the question: Is China too volatile for investors?
Allen Sinai, chief global economist at Decision Economics, said on "Morning Call" that investors should not panic and sell because of the plunge.
"This is a market event, markets get ahead of themselves so we need a correction at some point," he said. "All the stock markets around the world have been frothy and ahead of themselves. Investors should not panic because the fundamentals are strong in the longer run."