(Mar 13): Firstly, there is no sugar-coating over what has transpired. It is a painful fall in equity markets for all of us who are invested in markets. Even in a historical context, this one is big. The S&P 500 index is down 18.9% and almost breached the 20% fall from peak to bear market territory overnight.

It is easy to forget, but we were here before. Just over a year ago towards the end of 2018. Just like then, many indices around the world have fallen by more than 20% and entered bear market territories. Of course, it is the speed at which this fall has occurred that has been surprising but markets falling 20% happens more often than we think.

There have been 11 times the S&P 500 index fell by more than 20% and it does not include 2018 or this year. However, the following table also puts into context how severe the correction has already been in any ranking of past historical precedents. It is already the 7th largest daily fall (See Table 1) and if markets did nothing more from here until the rest of the year, it would be ranked 5th in highest annual falls.

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