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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People expect/fear prices to keep falling so they sell faster and faster.
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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Technically speaking, usually it does mean the lows are near. Has certainly been the case historically, and exponentially rapid price falls are often a sign of peak/climactic selling of a pace that will be increasingly hard to sustain.
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Sort of true for GFC. Took another 5 months to bottom. Doesn't look true for the Nasdaq during the internet bubble of '00. There's some relationship here with Mandelbrot's work on long memory of volatility periods in the market, but I can't remember how exactly that went.
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