Business Post's View

Editorial: Rather than collapsing, the stock market is correcting to reflect normality

The post-pandemic bounce has not materialised, but the current slide in share prices is not a doomsday scenario – just a bubble bursting

Stocks have been in retreat for much of this year, and the rout accelerated at an alarming rate last week. Picture: Getty

One of the great puzzles of the past two years is why a global pandemic should have led to the sort of stock market bubble not seen since the Wall Street Crash nearly a century ago. Much of the world was forced into lockdown by Covid-19 between March 2020 and the end of last year, causing economic activity to stall and consumer spending to collapse. Yet stock markets roughly doubled in value in that time.