Market drop ‘welcome correction’ says Lagarde

Last week’s roller-coaster ride for the markets is actually not a major source of concern for the International Monetary Fund (IMF) — in fact, the item sees the item as a “welcome correction.”

Speaking to CNBC at the earth Government Summit in Dubai, IMF Managing Director Christine Lagarde acknowledged the last week’s frenzied market sell-off, which saw the Dow Jones suffer its worst week in two years. Asked if This specific was something to worry about coming from the IMF’s perspective, Lagarde was unfazed.

“There has been quite a bit of market volatility coming from one day to the different, particularly led by the U.S.,” she said. “nevertheless if you compare market valuations coming from a week ago, there’s been a market correction of anywhere between 6 to 9 percent. Which frankly, given where asset prices were — very high — the item’s in our view a welcome correction.”

The S&P 500 officially fell into correction territory on Thursday, down more than 10 percent coming from its January peak. Financial analysts have long warned in which the rocketing bull market of the past year could at some point come to a screeching correction thanks to its highly overvalued stock prices — in addition to also the item appears last week was the first sign of in which, though experts are divided over whether the market has bottomed out or if the item has further to go.

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