From Chartoftheday.com:
``Continued concerns regarding the credit crisis, a slowdown in consumer spending, and a further weakening of the US economy sent the Dow down more than 7% on the day. Today also marks the one-year anniversary of the current correction. The Dow put in its record high of 14,164.53 back on October 9, 2007. Today, the Dow closed at 8,579.19 -- down 39.4% from its one year old peak. For some perspective on the magnitude of the current decline, today's chart illustrates how the Dow performed during the first year of all major corrections since 1900. As today's chart illustrates, the first year of the current correction has been more severe than the first year of any correction since 1900 -- and that includes the correction that began in 1929."
Two points of thought:
1. Could the collapse in US stocks signify more than just deleveraging and its economic spillover such that losses have topped 1929?
2. Relative to the Phisix which is down by 45% from the peak as of Friday's close, it used to be far worst, e.g. when US markets fell by 1% we dropped by 2-3%. Have we become low beta? Nonetheless despite the market's rout, the Phisix has held up well. So far so good.
``Continued concerns regarding the credit crisis, a slowdown in consumer spending, and a further weakening of the US economy sent the Dow down more than 7% on the day. Today also marks the one-year anniversary of the current correction. The Dow put in its record high of 14,164.53 back on October 9, 2007. Today, the Dow closed at 8,579.19 -- down 39.4% from its one year old peak. For some perspective on the magnitude of the current decline, today's chart illustrates how the Dow performed during the first year of all major corrections since 1900. As today's chart illustrates, the first year of the current correction has been more severe than the first year of any correction since 1900 -- and that includes the correction that began in 1929."
Two points of thought:1. Could the collapse in US stocks signify more than just deleveraging and its economic spillover such that losses have topped 1929?
2. Relative to the Phisix which is down by 45% from the peak as of Friday's close, it used to be far worst, e.g. when US markets fell by 1% we dropped by 2-3%. Have we become low beta? Nonetheless despite the market's rout, the Phisix has held up well. So far so good.
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