Good Company

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Friday, September 22, 2006

How much of a stock fall supports this headline?

The headline is Stocks fall amid pessimism about economy. At the time of the report, the Dow Jones Industrials were down .27%:
In midmorning trading, the Dow was down 31.30, or 0.27 percent, to 11,501.93, having dropped nearly 80 points on Thursday.
Let's see. .27% is equal to .0027. If you had $100, .0027 of it would be 27 cents, leaving you with $99.73. And the $100 got there by growing from some lesser amount. See the chart below provided by Chart of the Day:
COD says:
There are a lot of issues that are currently weighing on investors minds (i.e. weakening economy, relatively high prices, war and other geopolitical issues, etc.). Despite all these concerns, the market has managed to rally over the past few months and now trades near record highs. However, it should be noted that the Dow is also fast approaching the top of the trading channel that has been in existence since early 2004.
Yeah, well, I don't think I'll hit the panic button just yet.

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