November 5, 2018
Total losses on US, Asian and European stock markets due to large-scale sales in October exceeded five trillion euros, the largest collapse since the collapse of Lehman Brothers in 2008.
"The US S & P 500 closed down 8% in October – the worst effect in the last ten years." Nasdaq's high-tech company declined by 9.2%, when a replacement was set as of November 2008. And the stock market MSCI World, which includes securities traded in 23 countries, has fallen by 15% since the beginning of the year. "
The market was shaken by news about the possible withdrawal of Italy from the EU, as well as the murder of journalist Jamal Husuki at the consulate of Saudi Arabia in Turkey. Other reasons include investor concerns about rising interest rates in the United States, as well as worsening trade relations between Washington and Beijing.
According to estimates by the large US investment bank JP Morgan Chase, the worst is ahead and the US stock market is expecting a real collapse. It is expected that the market will fall due to the abundance of indices, exchanges and other passively managed funds. Now, up to 80% of all assets fall into passive management, and before the 2008 crisis, their share did not exceed 30%.
JP Morgan Chase notes that the global crisis is likely in 2020 – there will be a series of new falls in US indices. The bank's analysts point out that during the 2007-2008 global crisis, the S & P 500 stock index collapsed 54% of the leading prices.
It is considered that the next collapse of the global stock market will not be so great, as the value of assets in developing countries is now much lower than in 2008.