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Unprecedented Collapse Erases Years of Gains in Just One Month
In a stunning reversal, global markets have wiped out nearly all bull market gains accumulated since late 2022 in a mere 30 days—a collapse unlike anything I’ve witnessed in my 12 years of active trading. The velocity of this selloff bears echoes of the 2020 Covid crash, yet the dynamics feel distinct: tighter liquidity, structural vulnerabilities in derivatives, and a crisis of confidence in policymakers’ ability to curb inflation without triggering a recession.

While parallels to March 2020 exist—panic-driven deleveraging, flash crashes in bond markets—this downturn diverges in its roots. Unlike the exogenous pandemic shock, today’s turmoil stems from compounding macro risks (aggressive Fed tightening, energy shocks, earnings downgrades) that markets priced far too late.

Timing the bottom remains a fool’s errand, but my instinct leans toward a violent V-shaped rebound once capitulation runs its course. Much like 2020’s Fed-driven rescue, expect policymakers to flinch at systemic strain, sparking a short-covering frenzy. Until then, brace for more turbulence—this isn’t a drill, but history may rhyme.