Market participants rode through one of the scariest financial roller-coasters in the past two weeks. In Singapore some stocks were down 7-8% in a single day, cumulatively losing 15-20% in one week. In the US, things were even more dramatic, some stocks when through 20% intra-day swings. Then today everything bounced, as if nothing happened. It was really quite unsettling. Most of us would be asking, "Why? Why? What happened? What now?". Sadly, at this juncture, there are no good answers. That was what happened during the first two weeks for the Lehman crisis.
Markets are a bit like earthquakes. Shifts in tectonic movements cause tension to build up and over time this would result in earthquakes or eruptions, usually once every 10 to 20 years, we see a mega earthquake around the same vicinity. There was Kobe in 1995, then Fukushima in 2011. In the financial markets, we ......