7 Feb 2018
Market Metrics: Dow Jones Industrial Average (DJIA)
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
Important to pay attention but beware of market noise.
The DJIA reached an all-time high close of 26,616 points on 26 January 2018 and over the past 11 days has fallen 2,065 points to close overnight at 24,551.
Yes the points fall is big but the actual movement is only 7.7% which does not yet meet the technical definition for a market correction, defined as a 10% fall from recent peak.
The real excitement begins when the market crashes, defined as a 20% plus fall from recent peak which is when fear and panic take hold and investors are presented with the opportunity to buy more quality assets at discounted prices.
Will this become the next market crash, don’t know yet, just be ready for when Mr Market has his big manic depressive fit which is coming.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.
