Dow Jones Drops 414 Points to Close at 22,445

Say what you will about the housing market’s up’s and down’s.

But, I don’t know anyone who bought a home in early October for $270,000, that’s suddenly worth only $225,000 scarcely 10 weeks later.

Yet, that’s almost exactly what’s just happened in the stock market.

Just subtract two zeroes.

Historic Swoon

So, since setting an all-time high of 26,828 on October 3, 2018, The Dow Jones Industrial Average has now fallen almost 4,500 points, to today’s close at 22,445.

Smaller stocks, and formerly high-flying tech stocks, have done much worse.

Will there be a January bounce?

Will the Federal Reserve ride to the rescue (again)?

Stay tuned . . .

P.S.: Of course, a similar drop in housing prices would cause significantly more pain, especially amongst recent Buyers, because homeowners typically use more leverage (it’s called a mortgage).

See also, “Volatile Stocks, Slow-Changing Housing.”

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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