[Explanation] Affected by the spread of the global epidemic and the oil price war, global stock markets have plummeted, and this week has ushered in a "melt tide."

[Explanation] On March 12, according to incomplete statistics, the stock markets of 11 countries have "melted out." If we add the Kuwaiti stock market that had been blown out in the previous trading day, the stock market in 12 countries has triggered the blowout mechanism due to the plunge in the past week.

[Explanation] The fusing mechanism is also called the automatic suspension mechanism. When the volatility of the stock index reaches the specified fusing point, the exchange suspends trading to control risks. After the "Black Monday" in 1987, the United States set up a fusing mechanism, which was divided into three levels: 7%, 13%, and 20%.

[Explanation] On the 12th, all three major US stock indexes triggered a blowout within 10 minutes after the market opened. At the close of the day, the Dow Jones index fell 9.99%, the S & P 500 index fell 9.51%, and the Nasdaq Composite Index fell 9.43%. At this point, all three major US stock indexes have fallen into a bear market.

[Explanation] The first meltdown of US stocks occurred in 1997, and the second was on March 9, 2020, 23 years later. And on the 12th three days later, the third meltdown in the history of the US stock market occurred.

[Explanation] The average bear market in the history of US stocks lasts 21 months, the longest one lasts 62 months, and the shortest one lasts less than 3 months. The round of bull markets that just ended began in 2009 and has lasted 11 years. It is the longest bull market in American history.

[Explanation] As panic sentiment caused by U.S. stocks spreads to global financial markets, global markets have "melted out" and there have been stock markets in 10 countries including Brazil, Canada, Thailand, the Philippines, Pakistan, South Korea, Indonesia, Mexico, Colombia, Sri Lanka Because the plunge triggered the fusing mechanism, trading was suspended during the session.

[Explanation] European and Asia-Pacific stock markets also suffered heavy losses. On March 12, the European Stoxx 600 Index closed down 11%, the largest one-day drop.

[Explanation] In addition to the stock market, crude oil futures continued to plummet, and the precious metals gold and silver were not spared. Warren Buffett said the plunge was as scary as "Black Monday" in October 1987.

[Explanation] Some analysts believe that the global financial market has entered a "crisis". Only in times of crisis will there be such huge changes in various financial assets, and there will be large fluctuations across a wide range of asset classes.

[Explanation] As to whether the global financial tsunami will repeat itself in 2008, some experts said that if the response is timely, there will still be hope for the stock market quake. With a 30% decline in the short term, central banks around the world will act instead of being indifferent. Before the Federal Reserve and the Bank of England both cut interest rates, and now there should be urgent measures in place, and the rescue action is urgent. (Editor Li Jiali)

Editor-in-chief: [Li Yuxin]