Talking about it being 'to be expected' is a nonsense. If the market is so predictable, kindly enlighten us about what happens next, rather than being wise in hindsight.
Corrections are not the same as crashes that wipe out 20 or 30 years of gains. The index is still up for the year. It is very disturbing that the govt. rushes in to attack short sellers and prop up the market artifically, funneling money into it. They show no enthusiasm to attempt to curb the bubble as its growing as the mkt is on the way up. In that way they are the same as the western world.
Even by your extreme measures of what a crash is, you have to realise that they don't happen instantly... who knows how long the market might sink for... Or rebound?
No market is predictable. That is why you don't try to do it. Invest regularly, i.e. dollar cost averaging. The couple who invested their entire savings in one shot during an obvious run-up made an all to common emotional mistake.
OC I haven't studied the situation there in any depth.
Whether it's a week, a month, or a year, their market is going a lot lower yet. It'll retrace back to where it was, no matter what the central government does today. Trillions of dollars in real wealth will be lost in the debacle, as the event sets off dominoes.
As of now, if you invested the index four months ago, you haven't lost a penny.