Today’s Market Decline

Today’s market decline was the 9th worst in history, in terms of percent loss of the benchmark index (the S&P 500).

However, the market isn’t yet as distressed as you would think.  Less than two weeks ago, on September 17th, the S&P 500 was within 0.5% of where the index stands today.  It was at the same level in October 2004.  So really, this decline is not the end of the world.  It’s erased stock market gains made since 2004.  Is that so bad?

The S&P is down some 29 percent from its peak reached roughly a year ago.  The Shanghai Compositite Index is down more than 62 percent!  We should consider ourselves lucky.  Imagine how much personal wealth would be lost had our markets fallen as much as China’s!  I guess it’s still conceivable that US markets have further to fall, but as of right now, it’s (comparitively) not so bad.

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