With the market on the edge of another record low, analysts say the market has entered a free fall.
In an effort to keep investors informed of the latest developments in the markets, Al Jazeera spoke to market experts to see how stocks are currently trading at their lowest levels in almost a decade.
We have a lot of information that’s available, but what’s the most important information we have is the most reliable and the most comprehensive information available?
We also need to be aware of the long-term trends that have occurred in the market and not just short-term movements, because that is going to influence the future, says Ian Kinsler, founder and chief investment officer at SBI Wealth Management in Toronto.
We need to understand how stocks have performed over time, which is one of the biggest risks.
There are a lot more factors that are at play than just the short- and long-run performance of the market.
As investors, we have to be careful not to get caught up in the short and long term movements.
The short-run market is a bit like a bull market, which we will eventually get back into, says Paul Kilduff, co-founder of MacroTrader in New York.
The market is very volatile, so there’s a lot to be concerned about, he says.
If you look at the long term, you can see there is a clear bull market going on, which means the market is doing quite well, but the downside risk is there as well.
We see that when it comes to the stock market, the risk is not so great, and we should be paying attention to that.
Al Jazeera’s Emily Fidler, reporting from London, said that as investors, investors’ concerns should be focusing on the fact that stocks are going through an incredible period of consolidation.
The consolidation is happening at a very rapid rate, and the way it is happening, it’s taking longer than most of us think it should, she says.
I think that we have a very long way to go, and if the markets are going to come back to a place where we have sustainable returns, we are going have to do something drastic, like a large-scale selloff, to get the markets back to where they should be, she adds.
The SBI Insight team contributed to this report.