The Real Lesson From October’s Market Volatility
October was a wild ride for investors. At its low, the Dow Jones Industrial average plunged 5.2 percent from its September high. The Standard & Poor’s 500 index lost 6.2 percent and the Nasdaq was down 7.4 percent.
Global headlines seized upon market uncertainty and featured tabloid-style “advice,” posing questions such as, “Is this the last gasp of the bull?” and publishing tips for “knowing when to use your parachute.”
The destructive role of irresponsible media. Over at CNBC, Bob Pisani and Art Cashin engaged in a totally inane conversation about the drop in the Nasdaq on Oct. 10. Cashin referred to the market volatility experienced in October 2008, as if that had relevance six years later. He also mused about other technical indicators, and warned the markets could see additional volatility if those indicators moved lower.
Read the rest of the article at US News.