(As written for My Paper on 27 September 2011. Click here to enlarge)
We are officially in a bear market.
The bloodshed in the markets last week was breath-taking, with more than US$3.4 trillion (s$4.4 trillion) erased from equity values and over US $1 trillion in the US equity market alone.
Here’s a snapshot of some of the carnage:
1. The Dow Jones Industrial Average suffered its biggest loss since 2008
2. Gold had its biggest one day drop in almost three years, shedding 5per cent
3. Asian currencies had their biggest weekly drop since 1998
Even the MSCI All-Country World Index sank 7.6per cent, entering a bear market for the first time in more than two years. Read more…