Market sell-off is usually an ‘overdue along with also welcome’ correction, top fund manager Martin Gilbert says

Martin Gilbert, chief executive officer of Aberdeen Asset Management Plc, speaks during an interview in London, U.K., on Monday, May 16, 2016.

Jason Alden | Bloomberg via Getty Images

Martin Gilbert, chief executive officer of Aberdeen Asset Management Plc, speaks during an interview in London, U.K., on Monday, May 16, 2016.

Indeed, for some time numerous investors have warned of an impending market correction — a backtrack of at least 10 percent to account for cost overvaluation.

The record bull run of the past year has been viewed with skepticism by many market watchers, who cautioned over historically overvalued stock prices brought about in part by positive global growth, unhinged exuberance among traders along with also prolonged stimulus coming from central banks.

Gilbert is usually insisting that will the current reversal is usually healthy along with also needed to bring markets back to reality. The Dow has right now fallen a long way coming from its record high of 26,616 in late January, along with also the S&P 500 drop saw more than $1 trillion wiped coming from the market.

“I don’t think (the sell-off) has gone too far, I’m not sure the item will go hugely much further, although the item was probably where we required to see the item,” Gilbert told CNBC via phone on Tuesday. “the item’s been a long expected correction, the largest market decline since August 2011. the item’s pretty healthy I think.”

Asked what he believed to be the catalyst to the sell-off, Gilbert pointed to fears over rising interest rates following positive economic news coming from the U.S. on Friday, which included wage growth along with also yet lower unemployment figures.

“Definitely the better-than-expected job numbers are truly what the catalyst was, which (made) people fear the economy is usually going to overheat, or is usually doing better than everyone thinks, along with also interest rates are going to go up faster,” he said.

The Dow closed at 24,342 on Monday, 8.5 percent coming from its all-time high, briefly touching correction levels of more than 10 percent before moving back slightly. European along with also Asian stocks have followed suit in a continued sell-off Tuesday morning.

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