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If those margin calls continue, investors will have to offload other assets to come up with the cash they need.
If the similarities between Europe and Japan continue, investors could be on the look out for even worse share price performance, the analysts said: "However, perhaps the more worrying thought is what happened next.
Indeed, while the Fed's rate cut may initially produce higher stock prices, Mr. Kaufman said that if the rebound is to continue, investors would want to see four things: an increase in capital spending by corporations, a reopening of the junk bond market, greater availability of credit in emerging-country debt markets and a stirring of enthusiasm for initial public offerings of stocks.
If the IPO window closes, which looks likely should this slide continue, investors might be less inclined to open their wallets for startups looking to raise cash.
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Mr. Orlando continued: "Investors are just very nervous right now".
If that trend continues, investors could lose heart.Then there is debt.
As the budget shutdown in Washington continued, investors on Wall Street faced criticism that calm markets were encouraging House Republicans and making a default more likely.
The funds could use those fees to maintain the share price for continuing investors, making it more likely that they would stay in.
It continued, "Investors should instead focus on a deceleration in (downward) estimate revisions to determine an appropriate entry point on chip stocks.
As the hemorrhaging continues, investors have grown leery of the banks, the rating agencies, mortgage players, and even the Federal Reserve itself.
If the Treasury curve inversion continues, investors well might take a running leap for the keyhole once again, staging a replay of last summer's misery in the credit markets.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com