Points vs %'s: Which one to pay more attention to?
Updated: Oct 15, 2020
Today, the DJIA closed down -1,175 points below last Friday's -665 points. What does this mean? I don't know. I'm not an economist. Obviously there is some uncertainty going on.
What I CAN tell you... is that 1800 points is less than 2% of 26,000. But the financial news media would have you thinking that "The sky is falling" because it's the biggest POINT loss in a long time.
Let me help you: the LAST time the market closed an 777 point drop... was September 28th, 2008 - representing a 7% market correction.
If you're still feeling nervous about the market, there may be some safe alternatives to consider for your financial planning goals. Here is my video presentation on risk tolerance and recapturing investment losses.