How We Make Sense of the Market’s Drop
I heard on the local news Monday evening that the Dow Jones Industrial Average had fallen more than 1,000 points. I’m always amused when I hear the local news quote the Dow’s move in points. My guess is that the average viewer has no clue what “1,000 points” means. Is it 1% … 10% … 100%? Using context clues and the anchor’s tone, I think most folks get that it’s generally “bad” or “scary.” But what should you do when the Dow falls 1,000 points?!
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