In a Nutshell
- Volatility returns to stock markets
- Rising interest rates continue to impact bonds
- Signs of inflation?
Today, October 19, 2017 marks the 30th anniversary of ‘Black Monday’. On that fateful day in 1987 the Dow Jones Industrial Average, aka the Dow, had its worst single day drop in history. By the time the closing bell mercifully sounded at 4 p.m. the market had lost 508 points or 22.6% of its value. In our world today with the Dow at 23,000, that’s equivalent to a 5,100 point drop. [Read more…] about The Day Godzilla Came to Wall Street
As mentioned in my Q2 Market Review piece, this market has been quiet…too quiet. Historically, the stock market averages 3 pullbacks of 5% per year with one of those going on to become a 10% correction. So when was the last time markets pulled back 5%. Remember the Brexit vote in June 2016? Yep, it’s been over 13 months. Even more impressive is that it’s been almost a year since we’ve seen even a 3% pullback, only the 2nd time since 1950 we’ve gone this long. The first was in 1995. (Source: LPL Research). [Read more…] about Market Drop? It’s About Time!