With the return of volatility in the equity markets this week, we provide some historical context and thoughts on the state of the markets and economy.
As the national media has been sure to point out, the 1175 points the Dow Jones Industrial Average fell on Monday was the single largest point drop in the history of that index. But according to research by The Reformed Broker (http://thereformedbroker.com/2018/02/05/dow-drawdowns/), the 4.6% the Dow fell on Monday was just the 108th worst day in percentage terms. Still nothing to take lightly, and the last time we had a day like that was in 2011, but it wasn’t even a ‘top 100’ bad day. As the market gets higher in point value the greater a movement by an equal magnitude of percentage will appear.Read More