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Is It Time To Panic?

The markets took an incredible tumble yesterday – the third biggest daily drop for the Dow Jones ever – does that mean it’s time to panic? Should investors be worried?

According to our friends at MarketWatch – no. It’s not time to panic. Yesterday’s decline was definitely significant. It was the third biggest drop in the Dow’s history, but the Dow has been trading at rather high levels.

The drop, in terms of points, is the 254th biggest drop ever. So, while the drop is indeed significant, there have been 253 other drops that have been bigger.

MarketWatch breaks down the drop and shares a silver lining – stocks tend to rebound following drops of greater than 2%. They looked at the past 10 times the S&P fell by 3% and found that the average performance improved in the following weeks and months.

The full article discusses the drop in greater detail as well as discussing the continued impact of the coronavirus epidemic.

 

You may also find this article to be of interest:

Warren Buffett says ‘don’t buy or sell’ on the headlines as coronavirus puts stocks under pressure

 

 

 

Read 305 times Last modified on Wednesday, 26 February 2020 09:24
Tuesday, 25 February 2020 11:19

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