With a big day ahead of us, Brainy Smurf is predicting the DJIA to drop 515 points today.
I’ll even go out on a limb and say that the intra-day low will be down 700 points — shortly after the market opens only to recover later in the day.
I don’t like it. I don’t even really understand it, but I’m really glad that everything I have invested in the markets is for the long term. Today’s gonna hurt, but just for a little while.
The DJIA dropped 464.5 points, or 3.84% on the open this morning. With the 3/4 of a point rate drop, it quickly recovered. I like to think that had the Fed not taken that action, my shot in the dark guesses would have been pretty accurate.
I’m still not sure why the Fed stepped in. If a “crash” where allowed to happen today, tomorrow would be the start to recovery. Now we’re just putting off the inevitable even longer…