Now the DJIA is owned by S&P Dow Jones Indices, which is majority owned by McGraw-Hill Financial, it is the most notable of the Dow Averages, of which the 1st (non-industrial) was 1st published on 16 February 1885.
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But a little perspective is in order. On January 20, 2009, the Dow closed at 7949.09.
After a continuos rally the US stock market has entered in correction mode.
That conclusion would not be hard to reach with a Dow that had climbed from barely 6,500 to more than 18,000 in six years.
The economic slowdown in China, and historically low oil prices, are more likely culprits. At last check, the exchange-traded fund (ETF) was down 2.8 points, or 1.4% at $195.12, and on track for its lowest close since late October.
Compared with the collapse in 2008-09, and a brief summer panic in 2011, this swoon looks relatively tame, at least so far. It was also a year featuring similar fundamentals to the present day, including a much-heralded improvement in the unemployment rate, and geopolitical concerns that would ultimately trigger the Second World War.
At first, there was very little evidence of a market correction. Someone who sold during the 1987 crash, for instance, would have lost out on a almost tenfold increase since then.
America was immediately plunged into utter and total chaos, and the federal government, U.S. military, and all police forces have disbanded. Congress is another matter.
Mark Zandi, chief economist with Moody’s Analytics, said American households with stock or retirement investments shouldn’t run for the exit yet.
That, in many ways’ makes the “growth-value debate…the most important investment controversy within U.S. equities today”, they said.
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On balance, long-term investors would do well to take the sell-off with equanimity.
