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Dow Jones Industrial Average: 1,000 Points Ain’t What it Used to Be

February 6, 2018

The Dow Jones Industrial Average dropped more than 1,000 points last week. That might sound alarming, until you consider that 1,000 points on a percentage basis is relatively modest with the DJIA trading north of 25,000. At these levels, 1,000 points ain’t what it used to be.

For example, Fridays 666 point decline in the Dow Jones Industrial Average was the 9th largest point decline in the history of the index, but only the 697th largest percentage decline, according to Bespoke Investment Group.

So despite alarming headlines, last weeks 4% market loss wasn’t unusual, especially after such strong gains over the past 18 months. Investors should take it in stride, knowing that week-to-week and month-to-month market moves more often are noise for the long term investor.

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