The only difference is that the first journalists talk about panic, and in the other case it’s uplifting. The definition bubble is always in the past tense
Are there any surprises from the decline in world markets and can we talk about panic?
If any, it may be time to ask ourselves why the same ones were not surprised at one of the biggest growth periods on capital markets launched in 2009. For the past 2 years Wall Street has only been going up - a new record has been set since 1929 - 404 days without a drop higher than 3%.
During the whole week there were different versions, but the truth is that stocks are at historically expensive levels. This will not cause an increase in the correction. In such sharp declines comes an avalanche of margin call, as many speculators are on credit. This led to the rapid liquidation of stocks, which accelerated the decline in stock indices. In addition, the role of bots or artificial intelligence in trade has increased enormously in recent years. Their actions also increased volatility. We also can’t help but note the profit-taking process, which is normal for a market that in the past year has been a record after a record.
At this stage, it is important to note that the global economy is gaining momentum, that there is no collapse of an asset and a wave of inefficiability as happened in 2008 in the real estate sector, but there is a sobering up and worrying about the actions of central bankers. With the news of wage increases in the United States, which boosted fears of inflation growth, investors have come to realize that when higher inflation occurs, central bankers will be more aggressive in their actions. This is how sales started.The risk moment will come when central bankers around the world start to withdraw net liquidity at global level.
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