Points vs. Percentages

| February 09, 2018
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It’s All Relative

After the nine year bull market we have seen since the end of the Global Financial Crisis, a point decline in absolute terms is equating to a much smaller percentage drop.

For example, the Dow shed 1,175 points on February 5, for a 4.6% decline. The 113 point drop in the S&P 500 on the same day equated to 4.1%.

Go back to the previous bear market lows reached in midday trading on March 6, 2009, and these same point drops would have translated into 17.7% on the Dow and 16.5% on the S&P 500, respectively.

The point being is you will see blaring headlines about 1,000 point drops and special news coverage (read: CNBC Special Report). However, 1,000 points today is so much different than 1,000 points in 2009.

So the next time you read a click-bait headline or see a news story that tries to grab your attention, calmly turn it off and revisit this note: Focus On What You Control.


Stay Tuned, Disciplined & Patient! {TJM}

The Investor & Character Equation (ICE) | S + R = O


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