Wednesday September 23, 2020

Coronavirus fears weren’t only factor behind rush to sell shares

Investors worldwide belatedly realised last week that vast quantities of cheap money had pushed the valuation of many companies far too high.

1st March, 2020
6
Fears over the coronavirus and vast quantities of cheap money were some of the factors that led to the widespread sale of shares over the last week. Picture: Getty

Stock market values have been too high for too long. Fears of the spread of Covid-19 was just one of a number of factors that led to the widespread sale of shares over the last week.

On markets all over the world, including Wall Street, there was a belated realisation by investors that a wall of cheap money had pushed the valuations of many companies way too high and that was even before this crisis.

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