On... The Covid-19 Crash
Recently the global markets crashed, with the ASX200 index dropping about 30% in less than a month. What was the reason that sparked this crash? Most commentators blamed this on the COVID-19 pandemic as the catalyst, made worse with the oil price war between Saudi and Russia ( which sent Brent price tumbling as low as 25$/bbl ). If you ask my opinion, my answer is "I don't know ".COVID-19 seems like the highest probable cause but to be fair, news of the virus was not new and had been circulating in the news since January, yet the market still went on to reach All Time Highs . The only thing I know is that there are more sellers than buyers. To pinpoint why the market sold off, you probably need to go to Game Theory ( my favorite one being The Prisoners Dilemma ). In theory, regardless of the underlying reasons, IF stock holders decide not to sell at a lower price, the stock price will not go down. Imagine the following scenario happening in an alternate universe. C...