Tom Nash
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How Much Lower Can The Stock Market Go?
🕑 Added 2022-12-25 13:28:35 +0000 UTCSo first of all, how much more do we have to drop from this point, given the markets have been dropping quite significantly lately? The S&P500 is down 20% this year, the Dow is slightly better with only 9% but the NASDAQ really had a bad year with a 34% drop year to date.
So if we are heading into a recession and a stock market crash, how much more do we have to drop before we find the bottom? Let’s see what happened in the previous 2 crashes:
2000 Crash:
· S&P 500: -49.1%
· Dow Jones Industrial Average: -38.8%
· NASDAQ Composite: -78.4%
2008 Crash:
· S&P 500: -57.7%
· Dow Jones Industrial Average: -53.8%
· NASDAQ Composite: -49.1%
So, on average drop in a crash for the S&P500 in the last 2 crashes was 53%, fir the Dow Jones it was 46% and a whapping 64% for the Nasdaq. That means that if history teaches us anything, and if another recession is in the cards soon, the drop in the NASDAQ so far of 34% is only half way there. Based on the historical average the NASDAQ can drop another 30% before finding bottom. The S&P can drop another 33% and the Dow Jones another 36%.
The people who are screaming that the recession and stock crash already happened need to look at history and do some math. Be careful from morons on social media guys.
Comments
Generico Fakero
same to you Mark
Mark Sarasin
Merry Christmas Tom to you and your family!
