The Dow Jones Industrial Average dropped more than 1,000 points last week. That might sound alarming, until you consider that 1,000 points on a percentage basis is relatively modest with the DJIA trading north of 25,000. At these levels, 1,000 points ain’t what it used to be.
For example, Fridays 666 point decline in the Dow Jones Industrial Average was the 9th largest point decline in the history of the index, but only the 697th largest percentage decline, according to Bespoke Investment Group.
So despite alarming headlines, last weeks 4% market loss wasn’t unusual, especially after such strong gains over the past 18 months. Investors should take it in stride, knowing that week-to-week and month-to-month market moves more often are noise for the long term investor.
This report is based on data obtained from sources we believe to be reliable. Hefren-Tillotson does not, nor any other party, guarantee the accuracy or completeness of this report or make any warranties regarding results obtained from its usage. All opinions and estimates included in this report constitute the firms judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation to buy or sell the securities herein mentioned.