If you thought the Dow Jones Industrials Average gapping down at the open yesterday, then dropping a heart-stopping 785 points, and then rallying back 709 points to close down only 79.40 points was normal, you might be right.
As abnormal as that sounds, it’s not unusual for equity markets to make intraday moves like that.
And while it’s not unusual, the truth about how it happens is frightening.
Here’s what’s happening regularly in the markets, why it’s so frightening, and how it affects you…
Nothing sets investors’ hearts racing like a 1,500-point rally in the Dow Jones Industrials Average in less than two weeks.
Unless, of course, hearts are pounding because the Dow’s down almost 2,500 points in less than a month.
Welcome to the last couple of weeks and months. The market’s seen both extremes twice since October.
Instead of trusting their racing hearts, investors should be using their brains to ask themselves, why did markets rally bigtime twice since October? Why did stocks tank twice before they rallied? Is the coast clear or not? And, are there any signposts they need to be watching?
Here are the answers to those questions…