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Is anyone surprised? By the end of the week beginning Monday 5 February, the US S&P 500 index had fallen by 10% from its record high on 26 January and market conditions remained volatile.
Investors have been anticipating a correction in equity markets for at least a year. Market volatility as measured by the VIX index was below 11 for most of 2017. The 6% rally in large-cap US equities from the beginning of 2018 had always seemed excessive, particularly as it followed on what had been excellent returns over the preceding 12 months.