Global markets have been thumped pretty bad over the last week, and the last two trading days in particular. As of the time of this writing (Tuesday morning, 4:30am), it appears today will open lower as well. Will that hold? I don’t know. It depends on whether traders buy more than they sell today.
Yesterday, the Dow lost more points than any single day in history. This statement, of course, is the headline story for several news outlets. However, in percentage terms, it only marks the 108th worst day in its 121-year history.
Make no mistake, the market fell sharply, but it was far from its worst day ever. Further, the last time we experienced a drop like this was 2011, so it has been about seven years since we felt this roughly once-per-year event.
We wrote and talked with you at length over the last year about how strange of a year it was, where volatility basically evaporated from the global markets. Stocks seemed to be riding a wave of positive economic news toward an endless horizon. Continue reading “Ah…so that’s what risk feels like”