Don't Freak Out About Market Volatility

Personal Pay Loan

Don't Freak Out About Market Volatility

The headlines screaming around the world at the beginning of the week of Feb 5, 2018 were dominated with these words: "Dow sees biggest one-day point drop in history!"(The "Dow" refers to the Dow Jones Industrial Average, one of the two most often cited stock market indices for the US, the other being the S&P 500).

Should You Freak Out?

Absolutely not. Here are three things to consider.

1. The Headlines Were Totally Overblown

While factually correct — the Dow did indeed have its single biggest index point decline in history — it's sloppy for people to quote index point moves to non-business news viewers when they should be using percentage point moves.

read more