Volatility Is Scary—but It's Normal
The Dow's recent antics are an extreme resumption of one of markets’ typical features.
By the end of the day on Monday, the Dow had since the markets had opened that morning—its largest one-day drop ever. The day’s losses totalled up to around 4.6 percent percent of the index’s value, which is not insignificant, but also not unheard of: A drop of more than 3 percent followed Brexit back in 2016. And Monday’s losses weren’t on anywhere near, a day in 1987 that earned its name from the erasure of more than 20 percent of the Dow’s value.
