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Here’s a stock-market prediction: the Dow Jones Industrial Average will lose 5% in a single trading day, and maybe 10%, sooner than later.
There’s no crystal ball here; it’s just how things go on Wall Street. The Dow DJIA, -1.19% historically has suffered a 5% one-day drop every 18 months or so, on average. Trouble is, the Dow has now gone more than seven years without a single-day loss of such magnitude.
Markets are like people — they need to let off steam or pressure can build to an unhealthy level. The recent U.S. market decline is helpful in this way, and indeed the U.S. market is entering what has been historically its best six-month stretch. But market history also includes those white-knuckle, single-day drops.
As always, it’s important to be aware, and to have prepared, so that when stocks do take a dive you’ll be able to keep your footing.
INVESTING NEWS & TRENDS
The stock market is overdue for a one-day 5% or 10% plunge
An academic study finds the stock market will experience a 5% daily drop every 1.6 years, on average, and a 10% drop every 13 years.
The stock market is overdue for a one-day 5% or 10% plunge
Would you recognize a market top if it was staring you in the face?
This month is the 11th anniversary of the 2007 stock market top.
Would you recognize a market top if it was staring you in the face?
Low unemployment on Main Street is a warning sign for Wall Street
Stocks do better when more workers are looking for jobs, writes Mark Hulbert.
Low unemployment on Main Street is a warning sign for Wall Street
Millennials have more money than you think — so expect ESG funds in your 401(k)
You’ll soon be hearing even more about environmental, social and governance (ESG) funds, socially responsible investing (SRI) and impact investments.
Millennials have more money than you think — so expect ESG funds in your 401(k)
Blackrock, Fidelity employees and others sue over high fees on their own 401(k)s
Class-action lawsuits allege that big firms are unfairly loading retirement plans with their own funds.
Blackrock, Fidelity employees and others sue over high fees on their own 401(k)s
Why people who claim Social Security early often live to regret it
For retirees, the early bird does not always get the worm.
Why people who claim Social Security early often live to regret it
Why it might be better to take Social Security at age 66 instead of 70
Uncertainty about Social Security’s future makes forecasting difficult.
Why it might be better to take Social Security at age 66 instead of 70
The real reason why value and small-cap stocks lag the market
Investors and financial advisers are under an illusion, writes Mark Hulbert.
The real reason why value and small-cap stocks lag the market
The best financial advisers are your guide to more than just money
Industry guru Bob Veres advocates ‘collaborative planning’; fee-only compensation.
The best financial advisers are your guide to more than just money
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