Ken Fisher, Fisher Investments chairman & CEO, says this correction looks very similar to that of 1997, which was referred to as the Asian Contagion. Like then, this correction has been influenced largely by uncertainty around currencies. Also similarly to 1997, the most recent correction is during a period of low interest rates, falling commodity prices and has come after a long period of time without the market seeing a 10% pullback. In addition, according to Fisher, this correction and the one in ‘97 come roughly about the same amount of time (6-7 years) after major real estate declines (1990 was the Savings and Loan crisis while the 2008 financial crisis was partly a result of sub-prime mortgages).

Corrections come very quickly, says Fisher, and by the time investors realize the market is in a correction, the worst of the selling is almost done, whereas bull markets die with a “whimper, not with a bang.”

Fisher predicts there will be more short-term downside, followed by a sharp upward move, and then the bull market will resume, with large-cap US stocks most likely leading the way.