This guy says he has seen worse after Investors goes crazy over Dow Jones 4.6% drop

It was like a Black-Friday for the stock market. Daw Jones went flat back dropping nearly 1280 points in the process making it the biggest plummet of the history for a single day. During the final hours of trading, there were a heavy swing of points fluctuating in a matter of a minute. 

Monday’s massive drop-off pushed Dow below 25,000 points right where it first started in January. To make matters worse, there are news like these that has certainly given panic attack to the investors

“Dow falls nearly 1200 points in biggest points plunge in history”

“Markets witness a meltdown, as Dow Jones witness’s largest fall in its history”

“Dow Jones plunges 1,175 points as Wall Street bloodbath intensifies”

Now, this may be one of the most obscure days for the market that’s continuously back-pedalled by the global financial crisis.

But here is an elucidation is given by Wall Street Journal’s financial editor Dennis K Berman that might give you a sense of relief!

 

He also goes on to show the 1-year flow chart of Dow 

While there is no rational explanation for the fall, many have Republicans to blame(as always).

However, some still believe that the fall is temporary and every confidence prices will be back.

This can also be a lesson for an investor who streams their cash on risky assets like stocks.

Perhaps, it is time to invest intelligently by assessing companies and putting more trust on safer value like government bonds.

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