<story><title>Dow Falls 2997 points worst drop since 1987 crash</title><url>http://www.mortgagerateguru.com/2020/03/16/dow-falls-2997-points-worst-drop-since-87-crash/</url></story><parent_chain><item><author>mgolawala</author><text>To put it into perspective, the last time the market behaved like (multiple drops of this magnitude) this was 90 years ago, in 1929, and it was at the start of the Great Depression. Today was the second largest percentage drop for US Markets in history.&lt;p&gt;Now is not a good time to sell your stock holdings (at least not anymore). This smells of a panic right now.&lt;p&gt;I think a severe recession is all but guaranteed at this point. Let&amp;#x27;s hope we get through this with no more than that.</text></item></parent_chain><comment><author>lancewiggs</author><text>The S&amp;amp;P500, the best general index, closed at 2386 today. It&amp;#x27;s risen over 300% since the last crash, the GFC in 2007. It&amp;#x27;s been an extraordinarily lengthy bull run, and well overdue fo a crash.&lt;p&gt;Before the GFC the index was 1550, and after it was ~760 (~50% drop)&lt;p&gt;At the peak of the dotcom boom it was generally under 1500. 
In 2002 after that crash it was 800. (45% drop)&lt;p&gt;The recent peak was ~3380. A 50% drop is ~1700, which is almost 30% below where we ended today.&lt;p&gt;The question to ask yourself is how does this collapse compare to the dotcom collapse and the GFC?&lt;p&gt;The dotcom collapse affected internet businesses and was contagious (sorry) from there.&lt;p&gt;The GFC start with banks and finance and was contagious from there.&lt;p&gt;This starts with pretty much every industry, and has immediate impacts on supply and demand. It&amp;#x27;s going to be very ugly.</text></comment>
<story><title>Dow Falls 2997 points worst drop since 1987 crash</title><url>http://www.mortgagerateguru.com/2020/03/16/dow-falls-2997-points-worst-drop-since-87-crash/</url></story><parent_chain><item><author>mgolawala</author><text>To put it into perspective, the last time the market behaved like (multiple drops of this magnitude) this was 90 years ago, in 1929, and it was at the start of the Great Depression. Today was the second largest percentage drop for US Markets in history.&lt;p&gt;Now is not a good time to sell your stock holdings (at least not anymore). This smells of a panic right now.&lt;p&gt;I think a severe recession is all but guaranteed at this point. Let&amp;#x27;s hope we get through this with no more than that.</text></item></parent_chain><comment><author>tinyhouse</author><text>No one knows. You have the entire world working (mostly together) on ending this. I&amp;#x27;m optimistic things will get much better in a month or so.</text></comment>