"Aug 24, 2015 - The largest single-day point decline for the Dow remains September 29, 2008, when the index fell nearly 778 points, or almost 7%, at the offset of the financial crisis on a day when Congress rejected an early bank bailout plan."
But this percentage is sort of meaningless without context. Market "Value" is calculated by ratios of cost of shares versus earnings or profits - recent and expected.
Market movements, however, also reflect human emotions such as exuberance or greed, or fear of loss. The rise of the bitcoin in valuation represents greed - as investors pile in to attempt to cash out. The same thing is seen in reverse when the selling begins - investors get scared and attempt to bail out of their holdings, igniting races to the bottom.
Neither movement is reflective of the actual market value of any individual stock.
Point is, that even if a market loses 50% of it's value in one horrendous day of panic selling, there will be those with cash in hand, waiting "trembling with greed" as Warren put it, to purchase shares at fire sale prices -- because the market fundamentals haven't changed to any great extent, and once the emotion is removed from the investor thought process the value of those shares is going to rise once again.
So market corrections occur - sometimes horrendous ones, however, if your portfolio is properly positioned for the long term, your losses are going to be mitigated when the market rises again following the loss.
How much could the market drop in one day....???
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