Furthermore, history reminds us that bear markets are generally more disorderly than bull markets. Unfortunately, increased financial market volatility appears to have become entrenched in the post-global financial crisis era, with little sign of it dissipating in the immediate future.
Even in the present context of elevated financial market volatility, there are a few episodes that stand out: the 2010–11 European sovereign debt crisis; the mid-2015 ‘Grexit’ negotiations and Greek referendum; the rapid fall in the Chinese stock market in 2015–16; and now, more recently, the British in/out referendum, commonly referred to as the ‘Brexit’.