The Dow Jones Industrial Average had its largest decline in history on Monday, February 5—dropping 1,175 points! The headlines practically wrote themselves and were too exciting not to print. This was the largest single day decline in history, as long as we’re measuring in points and not percentages. By that measurement, Monday's drop wasn’t even the biggest decline in this decade. In addition, the 4.6% slide wasn’t significant enough to register within the top 20 daily declines and, of course, comes nowhere close to the 22.6% crash on Black Monday in 1987. Neil Irwin, Senior Economics Correspondent for The New York Times, does a good job pointing out that context matters and the stability of markets recently has distorted our perception of what market volatility can feel like: Context Matters. The Stock Market Drop Is Less Scary Thank It Seems. There may be issues that the market is worrying about, but Monday certainly wasn’t the worst day in market history.
NOTE: The articles and information at the above links contain the opinions of the author(s) and those interviewed by the author(s) but not necessarily Carlson Capital Management and does not represent a recommendation of any particular security, strategy or investment product. The opinions of the author(s) are subject to change without notice. Information contained herein has been obtained from sources believed to be reliable, but is not guaranteed. These articles are distributed for educational purposes and should not be considered investment advice or an offer of any security for sale. Past performance is not indicative of future results and no representation is made that the stated results will be replicated.