Following a week of Coronavirus led turbulence in the global stock markets I was inspired to create my latest emoji guide. This one explains how markets react to bad news.
Bad stuff happens, whether it is an outbreak of a new viral strain, a banking crisis, a geopolitical event, a natural event or anything deemed to be negative, the market’s initial reaction is to panic as investors around the globe consider the consequences of the events.
This panic can be compounded as more investors pick up on initial losses and join in with the panic. However, after a while, and it might be days, weeks or months, markets begin to realise the bad news isn’t as bad as originally feared. Sooner or later they return to their upward trend as investors start to think about making money again.
