The market has clearly shifted from the one-eyed positivity that prevailed around Donald Trump’s election victory to now belatedly starting to focus on the many latent downside risks.

And given a starting point for equities that was characterised by extreme overvaluation, the market is absolutely capable of overshooting with its negativity. That may mean this correction is only getting started. Here it is important to remember that markets have a propensity for hyperbole: that is, a tendency to overshoot on both the upside and downside.