Martin Gilbert, the co-CEO of multi-billion dollar fund Standard Life Aberdeen, says investors should calm down and believes the recent fall in stock markets is just a long overdue correction.
The Dow Jones plunged more than 1,500 points in Monday afternoon trading in its biggest single drop in history. The Dow and S&P 500 wiped their record 2018 gains and the Nasdaq saw its worst day since June 2016 amid frantic selling, which many analysts fear will continue.
"Panic is already starting to set in," one wealth manager told CNBC.
But Gilbert, whose fund oversees more than $300 billion in assets under management, wrote off those fears. The fund manager maintains this is nothing more than a much-needed market correction after an excessive run-up.
"Overdue & welcome correction," Gilbert wrote on Twitter Tuesday morning.
"Global economic outlook is improving but markets have got ahead of themselves, with asset prices indiscriminately inflated by years of QE (quantitative easing). There was an air of complacency."