There is no end in sight for the global market rout that began on Monday, market analysts and investors said, and may just be the beginning.
The bear market, which is usually characterized by longer and more tedious declines, should be expected in the coming days, Mark Mobius, executive chairman of the emerging markets group at Franklin Templeton Investment told Bloomberg in an exclusive interview.
The market declines, which briefly drove U.S. stocks down more than 1,000 points in early trading on Monday and ended with the Dow Jones Industrial Average down 588 points or 3.6 percent at 15,781, NBC News reported.
Mobius told Bloomberg that previous bear market dips saw a 50 to 60 percent drop and lasted longer. He said this might be necessary before seeing the market stabilizing.
The Singapore-based finance executive overseeing an estimated $4.5 billion in assets noted that investment managers these days are more pessimistic and more sell-offs are occurring to hold on with cash and to stay at the sidelines until the rout is over.
He noted that at these times, patience would be at the top of finance managers' list of virtues.
Asia Stocks Continue Slump
Tuesday's trading had not seen a reprieve for Asia stock markets. China's stock markets continue declines with its main stock exchange-the Shanghai Composite closing 7.6 percent lower. While Tokyo's Nikkei index fell 4 percent lower at the end of Tuesday's trading, according to BBC News.
"There was no clear catalyst for the global stock meltdown. The lack of clarity makes it difficult to assess what is needed to stem the rout," said Bernard Aw of IG Markets, according to Time Magazine.
Aw added that a spate of better economic news may help allay fears of a deteriorating global growth. He noted that improvements in the Chinese economy, considered as the second largest in the world will be welcomed.
Nonetheless, China's stock markets had been defying the multibillion-dollar government interventions. China's finance managers had recently devalued the yuan adding to the global market's woes, according to the Guardian UK.
