How Stock Market’s Big Drop Ranks

By on August 4, 2011

The market plunged around 5% today.  Since 1980 there have been 39 one day declines of 4% or greater, so this isn’t too unusual.

The average change 6 months later has been a gain of 6.5%, but this varies widely.  After a similar drop on 9/15/2008  (-4.7%) the market was 36.8% lower six months later.  After a 4.7% decline on 3/2/2009 the market had a massive rally of over 47% by September of the same year.

2 Comments

  1. Tuning

    August 5, 2011 at 10:15 am

    Not a good sign that over 50% look to be within the last 3 years.

    • Barron Maestro

      August 5, 2011 at 1:58 pm

      Yes, it appears we’ve reached a new age of volatility. Could be the death throes of Capitalism!

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