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"
Popular Posts
-
The Best Performing Dividend Aristocrat over the past decade is a boring business that few ever talk about The company is Cintas (CTAS), wh...
-
Altria (MO) reached an all time high of $77.79/share in 2017 Today, the stock sells for $53.50/share If you look at prices alone, you can re...
-
Five years ago, Realty Income $O sold at $70/share. Today, the stock sells at $60/share. Someone who invested 5 years ago and reinvested tho...
-
I review the list of dividend increases every week in an effort to monitor existing companies I own and potentially identify companies for f...
-
I review dividend increases weekly, as part of my monitoring process. This exercise helps to keep me informed on developments from companies...
-
According to Buffett, his biggest mistakes by far have been mistakes of omission. For example, in a talk founder Bill Gates in 1998 at the U...
-
Dividend growth investing is a simple but effective strategy. It is widely misunderstood too. As a Dividend Growth Investor, I look for comp...
-
I review the list of dividend increases every week, as part of my monitoring process. This exercise helps me monitor existing holdings and i...
-
The companies that do well, look out five, six, seven years, and some decisions they make may not be the right thing for the next year.” Pet...
-
Warren Buffett turns 94 today! The super-investor from Omaha has achieved quite the investment record at Buffett Partnership and Berkshire H...
