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Lisa Shalett, CIO at Morgan Stanley, explains the recent market volatility.

Key quotes

“The bear market is the result of investors dealing with the fear and uncertainty of a global pandemic, combined with a drastic slowdown in economic activity and an oil-price collapse.”

“Illiquidity has played a big role in volatility, as investors sold securities to raise cash.” 

“Too few buyers, when nearly every asset class was declining in price, became a recipe for the kind of extreme volatility across asset classes we’ve been seeing lately.”