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.
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.”