One of the most curious things about the stock market is that it’s slow to rise and FAST to fall. The S&P 500 took two years to climb 14% to 2,100 and two weeks to erase all the gains at one point in 2016. This phenomenon simply points to the human condition of being cautious when times are good, and absolutely freaking the freak out when times are not!
Hiring managers are just as bad as investors. Not only do they tend to over-hire on the way up because it’s not their money they’re spending, but they also tend to over-fire on the way down because it’s not their lives they’re hurting. They selfishly think that the more people they let go, the better their chances are of keeping their own jobs! Stock market corrections of 10-20% are enough to make managers wig out, even if the markets are still up 50% since the day they started.