The stock market is still down, but it’s down in a way that is not as pronounced as it was just a few weeks ago.
For a brief period of time, the S&P 500 plunged to an all-time low.
It has since recovered and the S.&)% has rallied.
For the first time in nearly two years, stocks were above the $1,000 level.
Here’s how the market looked before and after the crash: The S&s stock market index plunged to its lowest level in almost three decades, and the Dow Jones Industrial Average (DJIA) was down 4% to 21,834.
Shares of large American companies also tumbled, with Caterpillar (CAT), Caterpillar Holdings (CGT), DuPont (DUP), General Electric (GE), Intel (INTC), and Microsoft (MSFT) all losing market value.
Shares for U.S. companies fell as well, and as of Wednesday, the Dow was down 1,000 points, or 5%.
For the day, the index was down 8.4%.
“The stock market was very low on September 18 and then the market recovered and rebounded,” said Jonathan Weidman, an investment strategist at Cantor Fitzgerald.
“It was quite unusual.
There’s not a lot of precedent for this sort of behavior.”
The Dow is up 12% in 2018, the longest period of gains since 2007.
The S.P. 500 is up 6.9% and the Nasdaq is up 19.7%.
This is not the first downturn to hit the stock markets since the Great Recession.
In the years before the financial crisis, stock markets fell as much as a 20% decline a year.
Investors were concerned about the impact of a recession, the Great Depression, and fears of an imminent war.
The stock markets were also in the process of becoming more volatile and volatile stocks are no longer as appealing to investors as they once were.
“The markets are very volatile now,” said Weidmann.
“We’re not seeing as much of a correction.
This is a good sign.”
But stocks have not been able to keep up the gains in the last several years, and they are not likely to continue their ascent anytime soon.
“There’s been a lot more volatility, and we don’t see that coming back anytime soon,” Weideman said.
“For the next few years, the market will be volatile again.”
The biggest market correction of the last few years has been in 2008.
In October 2008, the stock index was off 3,000, or 1.6%.
But the next year it hit an all time high, rising to 20,932.
The Dow has since been down 4,000.
Investors who are still willing to bet on the stock indexes are going to be disappointed, Weidiman said.
They are not going to buy into the big picture, but the big pictures are getting better.
“People are not buying stocks,” Weismann said.
Instead, people are buying bonds and cash, which are still going up.
In 2018, investors bought a record $1.4 trillion, according to Bloomberg.
The most recent year for which numbers are available, for instance, was the fourth quarter of 2017, when the SDR index, which measures the price of a basket of currencies, hit an annual record high of $7.4 billion.
In other words, there are more investors now willing to take on the risk that the economy is going to collapse, Weisman said.
And because of this, the bond market has also rallied.
“Bonds are rising because they are safe,” Weigman said, “because they are cheap.
The economy is good.”
But the bond markets also are at risk of being overvalued.
“In the bond world, you see that a lot.
It’s not that the market is cheap,” Weishman said of the bond stock market.
“But the bond business is one of the most volatile.
It doesn’t have to be that way.”
Weismans advice to investors is to keep your money in a safe place.
It might sound obvious, but most people don’t want to lose their money.
The fact is, a lot has happened over the last three decades and we’ve had a lot going on in the economy.
We’re going to see more volatility in the next three years, Weishmann said, but this is a time for investors to be cautious.
“I don’t think we’re going back to where we were before.”
What to do if the stock prices start to drop: Investors should not be concerned if the markets start to fall, Weischman said and pointed out that there are other ways to protect yourself.
“If the markets go up or down, there’s nothing to worry about,” he said.
Weidmans advice is to stay away from investing your money.
He advises that people hold a large amount of money in their savings