The Worst Christmas Eve For The Stock Market Ever – The Dow Has Now Fallen More Than 5000 Points From The Peak

This is definitely not the gift that investors wanted for Christmas. On Monday, the Dow Jones Industrial Average plunged 653 points as panic swept through Wall Street like wildfire. That represented a 2.9 percent daily decline, and that made it the worst Christmas Eve for the Dow ever recorded.  Incredibly, the previous record had lasted for exactly 100 years. Normally the day before Christmas is a very, very quiet day on Wall Street, but right now there are no “normal” days for the financial markets. If you go back to early October, the Dow Jones Industrial Average hit an all-time record high of 26,951.81, and on Monday the Dow closed at just 21,792.20. That means that the Dow has now plummeted more than 5,000 points in less than three months, and that is a major milestone.

The S&P 500 also crossed a major milestone on Monday when it entered bear market territory

The term on Wall Street is synonymous with serious, long-lasting declines in stock markets. In numeric terms, a bear market is a 20 percent or more drop from a recent peak.

The S&P 500 hit that milestone on Monday, dropping 20 percent from its 52-week high. Markets have stumbled through what is usually one of their best months of the year, with indexes on track for their worst December performances since the Great Depression in 1931.

What this means is that the longest bull market in all of U.S. history is officially dead.

And there is still about a week left in the month. If things continue to unravel, this could ultimately turn out to be the worst December that the stock market has ever experienced.

Now that a bear market has begun, it is likely to stick around for a while.  Just consider these numbers

Since World War II, bear markets on average have fallen 30.4 percent and have lasted 13 months, according to analysis at Goldman Sachs and CNBC. When that milestone has been hit, it took stocks an average of 21.9 months to recover.

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William K. 10 months ago Member's comment

Panic is defined as an irrational emotion, and financial dealings should NEVER be driven by emotions. What part of that is so hard to believe?? So the reporting of panic driven poor choices is telling us what we already knew: It IS NOT all about wall street and their money. Unfortunately, they ARE able to do a whole lot of damage with their irrational panics.

Mark Borkowski 10 months ago Contributor's comment

Michael Snyder provides some convincing information that the drop of 5,000 points in the Dow Jones proves that we are clearly in Bear territory and that this represents a stock market crash. He is correct. Unfortunately, he does not say "how low can we go". His brilliant book "The Beginning Of The End" is one of the best reads I have read in past years. On the third read, I realized that this text was likely more reality than fiction. I purchased a second copy and sent it to President Trump. He would benefit from reading this treasure.

William K. 10 months ago Member's comment

If the book has more words than a tweet, will it ever be read by Mister Trump????

Beating Buffett 10 months ago Member's comment

How low can we go is the big question though, isn't it?

Mark Borkowski 10 months ago Contributor's comment

Based on today' s results as of 1:14 pm and President Trump's recommendation to buy on the dips, Mr. Buffett would do the same. Lots of believers in the markets that have seen this cycle before. Wait and see over the next few days if they were right. Likely, we will see lots of small profit taking and attempts to sell on Thursday or Friday.

Dean Gilmore 10 months ago Member's comment

Things are turning around. Just had a big increase yesterday. Single best day ever. Yes, a big dip since, but I'm still hopeful we'll see more days like yesterday's.

Susan Miller 10 months ago Member's comment

Unfortunately, that could very well be wishful thinking. But here's hoping. These are scary times.

Mark Borkowski 10 months ago Contributor's comment

Susan, you are correct. These are truly scary times. Today is another day. As of high noon, the Dow is down again. If you want some confirmation, please order Mr. Synder's book and read it.