While the falls in London were far more modest than those seen in the US yesterday – the FTSE 100 fell by 148 points – it’s worth remembering it hadn’t risen so high in the first place.

Still, London’s biggest index is well down on the dizzy heights seen on the last day of 1999, when it closed at 6930 – now 643 points higher than yesterday.

On the other hand, the FTSE 100 is still 65 points up on the start of year position.

Two more points to bear in mind, however.

Firstly, Alan Greenspan’s comments came too late to affect the UK market, but, on the plus side, valuation to profits are still modest by historical standards.

Compare the FTSE 100’s problems with the woes of the NASDAQ, however, and it feels like London is merely suffering from the slightest of hangovers, easily cured by a couple of paracetamols, while the US technology biased index languishes with its king-sized migraine.

The NASDAQ hit a score of 5132 on March 10 2000. After yesterday’s 96 point fall, the index was standing at just 2407.

It is worth remembering, at this point, that after the Wall Street crash of 1929, it took markets 25 years to fully recover.

Have we enjoyed a three year bull run, that has just taken a knock, or was the last three years little more than a short term recovery – a blip – in the first great bear run of the millennium.

© Investment & Business News 2013