Probably stupid to tweet this, and I do so with suitable humility knowing full well I could be totally wrong (no one really knows), but this really does feel like the bottom (for markets; not the economy/corona spread). 1/n
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When prices fall exponentially faster and faster, it is akin to an 'anti-bubble' - the inverse of climactic tops during bubbles, for much the same reasons in reverse. It is very characteristic of market lows.
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I don't understand this. The principal reason bubbles occur is that people expect prices to continue to rise so they buy, driving up prices, expecting that to occur. This can happen in reverse and a big move could merely reinforce that behavior. Can you clarify?
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People expect/fear prices to keep falling so they sell faster and faster.
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Sure, but that doesn't mean the low is near. Most people and a lot of money don't understand and/or ignores fundamentals. You can drop 10% and quite easily drop another 10% the next day. If anything, it's mathematically easier to do that as tomorrow's 10% < today's.
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You also have liquidity flywheel effects - peak inflows at top during bubbles drive forced buying; in busts peak redemptions/margin calls drive forced selling.
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