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
-
As part of my monitoring process, I review the list of dividend increases every week. I usually focus on companies that have managed to b...
-
I review the list of dividend increases every week, as part of my monitoring process. This exercise helps me monitor existing companies, and...
-
I am a big fan of Dividend Growth Investing. I like the mental model of Dividend Growth Investing, where a rising stream of annual dividend ...
-
I review the list of dividend increases every single week, as part of my monitoring process. This exercise helps me to monitor existing hold...
-
Dividend Growth Companies are businesses that have managed to increase annual dividends for several years in a row. Typically, established d...
-
Several of the large banking institutions in the US passed the Stress Tests imposed by the Federal Reserve. As a result, they announced thei...
-
Warren Buffett's investment in Coca-Cola (KO) is really fascinating. He started buying it in 1988 after the 1987 Stock Market crash. Buf...
-
There is some news around the consumer staples, which is a popular bread and butter sector for many dividend growth investors. It looks like...
-
The NASDAQ US Broad Dividend Achievers Select Index is comprised of a select group of securities with at least ten consecutive years of incr...
-
I review the list of dividend increases every week, as part of my monitoring process. It's one of my processes to monitor existing holdi...
