Last Monday the Dow Industrials fell by 777 points after the US Senate didn’t pass the 700 billion bailout package. Most news reporters informed the public that Mondays drop in the oldest US stock index was the largest one day point drop ever. They were correct in this one. The issue is that this was not the largest drop in percentage terms. In other words even though last Mondays drop was higher than the one on Black Monday in 1987, it was much lower in percentage terms. Armed historical with data from yahoo finance going back to 1928 I isolated the 20 largest one day percentage drops in the Dow Industrials. It seems like the largest point drop ever turned out be the 18th largest percentage drop. You could check out the original spreadsheet from this link.
The average performance one year after a large one day percentage drop was 6.46% (without accounting for dividends).
Relevant Articles:
- Average Durations of Previous Bear Markets
- Dow 370,000
- The ultimate passive investment strategy
- "Determining Withdrawal Rates Using Historical Data"
Subscribe to:
Post Comments (Atom)
Popular Posts
-
In order to become a successful investor, you need to survive first. You need to put yourself into a position, where your investments cannot...
-
As part of my review process, I look at the dividend increases every week. I use the following resources to compile this list, if you are i...
-
Warren Buffett does not need any introduction. He is a very successful investor who is in charge of Berkshire Hathaway. He has an impressiv...
-
In my monitoring process, I tend to analyze companies I own once every 12 to 18 months. However, I also receive push notifications such as a...
-
Back in 2017, I made a bet with Warren Buffett and my friends Carl over at 1500Days and Ben at Suredividend . Buffett does not know that...
-
I have tracked dividend increases on this site for over a decade, almost every single week. I use a process to compile dividend increases fo...
-
I am frequently asked by readers about resources I use. While I have discussed before the resources I use to monitor my holdings, and I hav...
-
I review the list of dividend increases as part of my monitoring process. This process helps me review how the companies I own are doing. It...
-
A little over two years ago I launched a project , where I am trying to show readers how I would go about building a dividend portfolio from...
-
The S&P Dividend Aristocrats index tracks companies in the S&P 500 that have increased dividends every year for at least 25 years...
Thanks for putting those 777 points into a better perspective DGI. The media loves to sensationalize days such as that with "worst ever", "biggest drop" just like when they have the market watch for whenever an index is about to break an all-time record high.
ReplyDelete