Investors React to Huge Losses Across Global Stock Markets

ABC News' Rebecca Jarvis reports the latest financial news and what might be coming in the week ahead.
1:24 | 08/22/15

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Transcript for Investors React to Huge Losses Across Global Stock Markets
fact that investors all over America and all over the world, in fact, are licking their wounds this morning. The Dow plunging more than 530 points on Friday ending one of the worst weeks in years and ABC news chief business and economics correspondent Rebecca Jarvis is here. Is there a real fear this slide will only continue when the markets re-open Monday. There are certainly the signs here and the big issue, two keys, first off fears of a global economic slowdown and, second of all, the federal reserve for six years now we've had 0% interest rates. That's about to change and once interest rates start going up, the training wheels come off the economy. People start to pay more for that are car loans, mortgages, and that could slow things down. Worries about what will happen with interest rates or what's happening in China, of course. There is a temptation to get very worried. Yes. Put it in perspective for us. Don't panic. Anybody who tells you with certainty where the market is heading from here is trying to sell you something. The bigger picture, over the last five years the same stocks that have lost a lot of money in the last week are up 61%. Most people's 401(k)s if you left your money there and let it ride is doing a lot better than it was in the great recession. Useful perspective. A lot say buy the dips. Takes a big stomach to do that, but, yes. And a big wallet. Perhaps. Rebecca, thanks. Cecilia, over to you.

This transcript has been automatically generated and may not be 100% accurate.

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