AAII Home AAII Blog

200-Point Moves in the Dow Are No Longer Significant

Investor-Update

A quick question: Is a 200-point move in the Dow Jones industrial average a big change or not?

If you are like many people, your intuition is to say “yes, it is” (especially if you ignored the headline of this week’s commentary). Until fairly recently, a 200-point change was a big move. But, then the bull kept running. And running. With each upward move, the absolute value of the Dow rose. As the Dow rose, the importance of a 200-point change decreased.

Read more »

 

Leave a Reply

Your email address will not be published. Required fields are marked *