It has been a challenging 3 months for equity markets, with many developed markets entering correction territory, defined as a 10% fall from their recent highs.
Drivers behind this move are multi-fold and explored in this edition of Window on the World. Whilst market setbacks are uncomfortable for investors, they occur quite frequently, with a 10% fall in equity markets typically experienced every 12-18 months. The moves we have seen over the past three months are therefore not an outlier, and history reminds us of the importance of remaining invested through the cycle to maximise long-term returns.