When markets are volatile, a lot of old friends and acquaintances pop up. After polite inquiries about family, there’s normally a warm-up question ("how about these markets, eh?") before the real question. At the moment it takes one of two forms. “Is it time to buy?” or “What should I buy?”

It seems we’re always fighting the last market battle. Many investors remember the strength of the bull that drove shares higher for 10 years. Those who bought shares almost any time after March 2009 did well. Many profited from a “buy the dip” mentality. Despite the very clear evidence of an enormous change in market conditions, many are still clinging to this behaviour.