Source: New York Times |
As shown, there have been 3 instances of 4 consecutive days where the average moved by more than 4%. A 4% move today is even more interesting when you consider that savings accounts offer less than 1%.
With the DJIA at 11,143, the math works out today to be a bit over 100 points for each percent. The 1987 20% drop is the infamous "'87 crash" that is constantly referenced.
A chart like that puts things into perspective!
ReplyDeleteIf you are able to leave your emotions at the door market volatility can be one of your best friends.
ReplyDeleteAll you need to do is forget about greed, fear and envy. If you stick to shares in quality companies there are so many good strategies to take afvantage of the predictable ups and downs that they will go through.
A 400 point move can be a bit unnerving only if you are invested in speculative kinds of stocks.
Otherwise, as this past week has shown and how the aftermath of the March 2009 lows has shown, good stocks recover.