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 S&P Dividend Aristocrats index tracks companies in the S&P 500 that have increased dividends every year for at least 25 years ...
-
A lot of people would tell you that receiving a dividend is the same as selling stock That's deceptive at best, and an outright lie at ...
-
Today marks the 18th year of the Dividend Growth Investor blog. I started it on my kitchen table 18 years ago, as a way to share my throught...
-
McDonald's Corporation (NYSE:MCD) franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the...
-
Diageo plc (DEO) engages in producing, distilling, brewing, bottling, packaging, distributing, developing, and marketing spirits, beer, and...
-
John D Rockefeller, the founder of Standard Oil is famous for saying that the only thing bringing him joy in life was the sound of his divid...
-
Anne Scheiber worked as an auditor for the IRS. She retired at the age of 51 in 1944, and focused on managing her portfolio for the next 51 ...
-
Here is the simple answer: live off dividends Here is the longer answer –when you live off the income that your portfolio produces, the c...
-
I am a big fan of Warren Buffett, the Oracle of Omaha. His letters to shareholders are an excellent resource for students of value investing...
-
In this tough market, investors are always looking for a way to make a buck. Merger Arbitrage is a strategy where investors could profit fro...
