The market correction over the past two-and-a-half weeks will go down as the fastest in history — no other period has experienced a greater than 20 per cent drop in such a short period of time.
We’re now in full panic mode with stocks being sold at steep discounts, banks blowing out client positions to cover margin shortfalls, ETFs offloading illiquid underlying positions and a plethora of quant funds all using the same trading algos that are flashing DEFCON 1.
The fact of the matter is that corrections happen, but the magnitude and speed of this one really makes one question the near-term outlook from here. That said, there are some important lessons to learn from all this that will help provide some longer-term perspective, something severely lacking amid the sensational headlines.
Understand the powerful influence of social media
“No, everybody is not panicking, it’s just that you’re only hearing