The generally accepted definition of a stock market correction is a fall in prices of 10pc or more. The S&P500 is not quite there yet, but after another turbulent week for share prices, the FTSE100 is already well into the defining scale of loss.
My guess is that it may have to go the full 20pc that would qualify the sell-off for “bear market” status before the buyers return. We’ve not seen anything quite like it since the nadir of the financial crisis in 2008/9.
The key determinant will be whether the China slowdown turns out to be just a temporary blip, or something much nastier, presaging the hard-landing in the Chinese economy many, including yours truly, have feared for a long time now.
