Investment Help

If you are seeking investment help, look at the video here on my services. If you are seeking a different approach to managing your assets, you have landed at the right spot. I am a fee-only advisor registered in the State of Maryland, charge less than half the going rate for investment management, and seek to teach individuals how to manage their own assets using low-cost indexed exchange traded funds. Please call or email me if interested in further details. My website is at If you are new to investing, take a look at the "DIY Investor Newbie" posts here by typing "newbie" in the search box above to the left. These take you through the basics of what you need to know in getting started on doing your own investing.

Friday, August 12, 2011

Market Volatility

CNBC yesterday made a big deal out of four consecutive days of 400 points or more swings in the Dow Jones Industrial Average.  Here is a look at volatility in terms of percentages for the S&P 500:

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.


  1. A chart like that puts things into perspective!

  2. If you are able to leave your emotions at the door market volatility can be one of your best friends.

    All 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.