DJIA crashes below 30,000
I have been posting a lot about stocks lately because I know some of you are worried. I hope these posts help.
Quick stock market wrapup thoughts:
Although the Dow finally fell below 30,000 and hit a new low for the year, it is NOT in a bear market yet. A bear market is not a feeling. It is an actual specific term that refers to a 20% drop from the high. The NASDAQ is down over 33% and the S&P 500 is down over 22%. However, the Dow is still down less than 20% from its all time high of 36,952. That was January 5, 2022. Only 5 months ago.
A 20% drop would be 29,562. The Dow bottomed out today at 29,740. It stubbornly refused to go lower. Now if it falls below 29,562, all heck could break loose.
However, during the pandemic of 2020, the Dow dropped 40%. So there could be plenty of pain ahead.
On the other hand, if the Dow can get back above 31,000, it would be a positive sign. It really needs to get back above 33,300 for me to feel better. That is 10% from the high.
We are not in a recession yet. A recession is not a feeling. It is also a specific term referring to 2 consecutive quarters of negative economic growth. We had negative growth last quarter. If this quarter that ends June 30th turns out to be negative, then in July we will officially be in a recession. However, that might not happen.
I want all my friends to lead a better life, and that starts with healthier finances. For those of you who can ride out miserable economic times, you will be much better off in a few years.
eric TYGRRRR EXPRESS