What is stock market panic? This year's game we received examples of this in the local stock exchange and the VDO market. First in July and August, second now. Collapsed selling does not necessarily translate into panic. Stock panic is the fear of seeing quotes significantly lower than the current ones. The argument that the market is cheap or profitable does not work in its hot phase. Panic symptoms develop gradually. First, in the form of local falls, in individual newspapers or in individual events. These falls reflect heightened anxiety and are characterized by speed, but can later be redeemed quickly and completely. They can even be classified as regular fixes, where it all ends. But if anxiety builds up, episodes of falls become more frequent, deeper and more systematic. A general response based on the sale appears. The fear of loss of profits is replaced by the fear of future losses. In the final stage, as probably happened in the segment of high-yield bonds or, more broadly, retail bonds in recent sessions, sell-offs and collapses in rates completely lose selectivity and are already weakly related to specific events. They sell proactively, especially, because something has not yet fallen. However, the stock market makes no sense during periods of both rapid growth and rapid decline. If you look at stocks, according to the Moscow Stock Exchange Index, they are 29% higher than the July panic crash level, counting from the bottom. It won't be surprising or new when they turn up and find themselves significantly higher than VDO's quotes. As sales continue, money is released. The fact that this money is associated with losses is normal and does not destroy your potential customers. The speculative crowd will mostly lose and will not refuse further trading. Changing the balance of assets towards money also shifts the balance of fears. I remember the lost profit as if it lost its relevance. How events will develop in the future is the already described example of the stock market.

What is stock market panic? This year's game we received examples of this in the local stock exchange and the VDO market. First in July and August, second now. Collapsed selling does not necessarily translate into panic. Stock panic is the fear of seeing quotes significantly lower than the current ones. The argument that the market is cheap or profitable does not work in its hot phase. Panic symptoms develop gradually. First, in the form of local falls, in individual newspapers or in individual events. These falls reflect heightened anxiety and are characterized by speed, but can later be redeemed quickly and completely. They can even be classified as regular fixes, where it all ends. But if anxiety builds up, episodes of falls become more frequent, deeper and more systematic. A general response based on the sale appears. The fear of loss of profits is replaced by the fear of future losses. In the final stage, as probably happened in the segment of high-yield bonds or, more broadly, retail bonds in recent sessions, sell-offs and collapses in rates completely lose selectivity and are already weakly related to specific events. They sell proactively, especially, because something has not yet fallen. However, the stock market makes no sense during periods of both rapid growth and rapid decline. If you look at stocks, according to the Moscow Stock Exchange Index, they are 29% higher than the July panic crash level, counting from the bottom. It won't be surprising or new when they turn up and find themselves significantly higher than VDO's quotes. As sales continue, money is released. The fact that this money is associated with losses is normal and does not destroy your potential customers. The speculative crowd will mostly lose and will not refuse further trading. Changing the balance of assets towards money also shifts the balance of fears. I remember the lost profit as if it lost its relevance. How events will develop in the future is the already described example of the stock market.