Analysis > February 2016

Markets: Is it time to panic?

When a significant fall occurs in the stock market the most important question to ask is: Why? The initial trigger for the recent collapse was a long overdue fall in Chinese shares. The Shanghai Stock Exchange index had rocketed in value from 2,039 points in July, 2013 to 5,131 points in June, 2015. That was a staggering increase of 151%. That was never sustainable. Since June shares have fallen by 47%. In many respects it is not too surprising. Shanghai …