So, as we always do, let’s put yesterday’s action in perspective for the average person.
#7 on the “total points” list happened five months ago today — February 27, 2007. On that day, the Dow lost 416.02.
Was it a crisis? Probably not. We know that because if you pulled your money out of the market February 27, you would have missed the 10.3% in market gains since that day.
Yesterday’s loss doesn’t register in the Top 10 on a points basis, and on a percentage basis, it’s even farther off the chart. At 2.3%, the loss is just a blip.
The point is this: If you are invested in stocks, don’t react too swiftly to the headlines. Many passive investors lose money when trying to time the market’s ups-and-downs. If you’re nervous about your exposure to stock market fluctuations, speak with your wealth planning professional for advice.
The Dow’s worst day ever remains Black Monday on which the market lost 22.61%. Since that date, however, the Dow Jones Industrial Average has added more than 12,000 points. Investors that stayed the course endured temporary pain, but emerged as winners.
Don’t let yesterday’s losses get your down.