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Equity prices dropped 90%.
Equity prices and global trade fell more.
That can't be good for equity prices.
Equity prices are sinking while the dollar is rising sharply.
The takeover market's pattern of following equity prices is counterintuitive.
"But an extended slide by equity prices could be damaging.
Even after last year's run-up, equity prices have fallen over the last decade.
Falling equity prices make cross-shareholdings less attractive: in general, they are being sold—albeit slowly.
The 1920s were an era of extraordinary private credit growth, which contributed to surging equity prices.
As concern mounts, equity prices fall immediately, which makes it less attractive to sell.
Lower bond yields encourage borrowing; higher equity prices raise consumption; both help investment and boost demand.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com