John K. Ritter, CFP, CFS
Yesterday was a very negative day in the markets, with the Dow Jones Industrial Average shedding 800 points, or 3.05%. While that can be disconcerting when you see it playing out over the course of the day, it's interesting to note that this actually is more common than one would think.
Believe it or not, yesterday marks the 307th time that the Dow has fallen 3% in a day over the last 100 years. I have to admit that I was surprised when I heard this. The following graphic shows you the distribution of returns, and the "outliers" are fairly easy to notice.
This image may cause some flashbacks for Jeff Daniher, as he had just started his career in 1987 when you see the "Black Monday" event. That day, the Dow dropped an incredible 22.61%!!
Volatility has obviously come roaring back, but keep the long-term focus in mind. The equity markets are still up a healthy amount this year, despite the rough day yesterday.
Should you have any questions, don't hesitate to let us know. Have a great end of the week.