General Discussion

Algernon Moncrieff

(5,790 posts) Thu Feb 8, 2018, 05:51 PM Feb 2018

If the Dow dropped 38 points in a day, would you say that was bad?

If it were tomorrow, probably not. But if it was October 28, 1929, and you were in the market, it would be really bad -- especially of you had bought on margin. That's because that 38.3 point drop represented a little bit less than 13% of the overall value of the market.

You might want to check out this List of largest daily changes in the Dow Jones Industrial Average.

Black Friday wasn't even the worst drop of all. One fine day in 1987, in the early days of computerized trading, the DJIA dropped 508 points in one day, or 22% of the market's overall value.

This is not to say that this is a good or bad time to be invested in stocks. It's just some perspective. 1000 + point drops seem scary until you remember that last week, the market was setting records at around 26,000.

8 replies

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If the Dow dropped 38 points in a day, would you say that was bad? (Original Post) Algernon Moncrieff Feb 2018 OP

I don't think anyone is afraid or panicking. LanternWaste Feb 2018 #1

I think most here are aware of that. But two drops greater than 4% in a week are significant. Squinch Feb 2018 #2

Statistically, the market is way past due for a correction Algernon Moncrieff Feb 2018 #3

that's a little bit of what happened in 87 too, stock went bonds that had decent rates uponit7771 Feb 2018 #4

Ah yes, the halcyon days of junk bonds Algernon Moncrieff Feb 2018 #8

So everyone is saying. But I think there is a lot more to this than modest increases in interest. Squinch Feb 2018 #6

All I know is OriginalGeek Feb 2018 #5

I luv all this stuff, but onethatcares Feb 2018 #7

LanternWaste

(37,748 posts)

1. I don't think anyone is afraid or panicking.

Reply to Algernon Moncrieff (Original post)

Thu Feb 8, 2018, 05:53 PM

Feb 2018

I don't think anyone is afraid or panicking.

I think a lot of people are discussing, analyzing, even mocking the DJIA.

But no panic. No hair is on fire. No one is about to jump.

Squinch

(51,025 posts)

2. I think most here are aware of that. But two drops greater than 4% in a week are significant.

Reply to Algernon Moncrieff (Original post)

Thu Feb 8, 2018, 05:54 PM

Feb 2018

And there is a lot more to come, if the volatility index is to be believed.

Algernon Moncrieff

(5,790 posts)

3. Statistically, the market is way past due for a correction

Reply to Squinch (Reply #2)

Thu Feb 8, 2018, 05:59 PM

Feb 2018

...and realistically, it is overreacting to modest increases in interest.

Hey - I'm no genius: I've had a lot of my 401K parked in bonds since the DJIA was in the 16s. I thought it was overbought then.

uponit7771

(90,367 posts)

4. that's a little bit of what happened in 87 too, stock went bonds that had decent rates

Reply to Algernon Moncrieff (Reply #3)

Thu Feb 8, 2018, 06:03 PM

Feb 2018

Algernon Moncrieff

(5,790 posts)

8. Ah yes, the halcyon days of junk bonds

Reply to uponit7771 (Reply #4)

Thu Feb 8, 2018, 06:17 PM

Feb 2018

Squinch

(51,025 posts)

6. So everyone is saying. But I think there is a lot more to this than modest increases in interest.

Reply to Algernon Moncrieff (Reply #3)

Thu Feb 8, 2018, 06:05 PM

Feb 2018

OriginalGeek

(12,132 posts)

5. All I know is

Reply to Algernon Moncrieff (Original post)

Thu Feb 8, 2018, 06:04 PM

Feb 2018

a republican co-worker commented often when the market dropped during Obama's presidency. Haven't heard a peep lately.

onethatcares

(16,192 posts)

7. I luv all this stuff, but

Reply to Algernon Moncrieff (Original post)

Thu Feb 8, 2018, 06:12 PM

Feb 2018

as a semi retired carpenter that's trying to make it to next year I can't see what the climb was based on and now I see that profit taking is what is causing the fall.

To me all that is bullshit and if credit use was the reason, we are totally fucked in all ways.

Anybody got some reasons I should look upward and forward? Maybe some renewable energy patents that are coming on line, or pollution stopping microbes that will do good for all of us,

Or is it just money making money?

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