Here's To Your Wealth
The Market's Wild Ride
This week, the Dow Jones Industrial Average dropped in a way that it never had before. Monday, the benchmark fell 1,175 points, taking its greatest point tumble in its long history. At one point, it was down 1,500 points during the trading day.1,2
We have been busy analyzing the situation and reviewing market conditions. Click here to listen to Mark's comments on FOX5 from this past Sunday.
While Monday's Dow loss was indeed severe, it was not as catastrophic as certain headlines trumpeted.
The index fell 4.6%, which is today's equivalent of a 652-point dive back in October 2007 when the Dow reached its pre-recession closing peak of 14,164.43. For some recent perspective, consider that the Dow took a 610-point dive the day after the United Kingdom voted for the Brexit in 2016 - and over the following 20 months, it ascended to record heights.1,2,3
Today, the market rebounded strongly with the Dow rising over 550 points. We are not surprised. The overall economy is still strong.
One example of strong economic data is the Institute for Supply Management's service sector purchasing manager index. It just came in at 59.9 for January, a 13-year high. Just one of many recent strong indicators.2
Pullbacks and corrections will always occur on Wall Street, and sometimes the bulls turn tail and run. It is part of the long-term story of the market. This Dow pullback was extraordinary in its four-digit depth, which was to be expected someday with the index above 26,000.
This is a moment in stock market history - and thankfully, not the norm in that long history, as any glance at stock market cycles will reveal. At times like these it's a good idea to avoid making hasty decisions, keep the long term in perspective, and realize that corrections are part and parcel of stock market investing.
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Thank You From The Entire Potomac Wealth Advisors, LLC Team

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1 - [2/5/18]
2 - [2/2/18]
3 - [2/5/18]

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Watch Mark on Fox Business Network Wednesday morning at 5:15 a.m. discussing recent market moves