What's going on with the Stock Market?
Share prices have dropped across the world. In total, nearly £2.8 trillion has been wiped off global stock markets after Wall Street suffered its biggest one day fall on record.
In Britain, the FTSE 100 fell nearly 3pc in one day.
The dip will have caught some savers with their guard down. Stock markets had been rising steadily, with few hiccups, since the financial crisis and there was no obvious trigger for this drop.
Share price growth has been particularly strong since Donald Trump was voted in as U.S. President in November 2016 and promised tax cuts to supercharge America’s economy. If you had invested £10,000 in the FTSE 100 then, you would be sitting on £11,200 today.
However, experts have been waning about a stock market fall for some time.
The phrase they have been using is ‘market correction’. This simply means the market has risen too fast, too quickly and is due to come back to earth at some point.
The problem with the market corrections is no one can tell what the natural level should be.