The way I see it, the current stock markets slump had elements of the Global Financial Crisis in 2008/09. The fear of investors and fund managers the world over was obvious. No one wanted to wade into the stock markets and then seeing their long positions eroded by falling prices. The famous saying is like catching a falling knife. They do not want to be the brave ones to make a call when is the real bottom of the curve. The herd instinct is now very strong. Each one is looking over the shoulder to see what others are doing. With this kind of environment, stocks continue to plummet. (There are sellers trying to unload, but nervous buyers dare not pick them up.) It may move sufficiently downwards before the stock market turn the corner decisively. So in the meantime, many investors are adopting a wait and see attitude and paralysis is the norm.
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