Market dive: The day your hair turned white

Years from now, when your innocent grandchild asks why your hair turned white, and when it happened, many will be able to say with precision: Monday, May 13, 2019 at 4:01 p.m. EDT.

That’s when we learned, after a record 10-year bull market, that the stock market was down 760.96 points closing at 29,040.67 or a loss of 2.55% — in one day. That represented a paper loss for the day of approximately $800 billion. The reasons may be forgotten by then: China tariffs, Iran acting up, Venezula in turmoil, Brexit on hold, Brexit moving. Whatever, stuff happens. And while it happens all the time markets and investors are jittery and get rattled sometimes at the darnedest things.

There have been worse days — we hope — in the past that, again, we hope, make Monday look like a blip on the radar: October 1929 comes to mind and more recently, the 2008 recession. But even a one day dip makes many investors nervous.

But the May 13 edition of Wilshire Factoid, which tracks the Wilshire 5000 Total Market Index for that day, records a lot of paper loses, like Monday’s of $800 billion. That was the worst day so far of 2019 and the biggest single-day point loss since Dec. 4, 2018. Then this string of not-so-good news item from the Factoid:

  • “The Wilshire 5000 Total Market Index (W5000) closed today at 29,040.67 down -760.96 points or -2.55%. This represents a paper loss for the day of approximately $800 billion.”
  • “This is the worst day of 2019 and the worst single-day percentage loss for the Wilshire 5000 since December 24, 2018 closed down -639.61 points or -2.58%.”
  • “This is the worst day of 2019 and the worst single-day point loss for the Wilshire 5000 since December 4, 2018 closed down -972.74 points or -3.38%.”
  • “The Wilshire 5000 fell for the fifth time in the past six trading days.”
  • “For the month, the Wilshire 5000 index is down -4.50% or approximately $1.5 trillion.”
  • “For the quarter, the Wilshire 5000 index is down -0.77% or approximately $250 billion.”
  • “For the year, the Wilshire 5000 index is up 12.78% or approximately $3.5 trillion.”
  • “Since the recent, December 24, 2018 market low, the Wilshire 5000 index is up 20.24% or approximately $5.1 trillion.”
  • “Since November 6, 2018, the close on the day of the 2018 Election, the Wilshire 5000 has gained 2.02% or approximately $600 billion.”
  • “Since the September 20, 2018 market high, the Wilshire 5000 index is down -4.68% or approximately $1.6 trillion.”

Looking longer range the news is much better. The Factoid says:

  • “Since January 20, 2017, the close on the day of the Trump Inauguration, the Wilshire 5000 has gained 22.30% or approximately $5.8 trillion.”
  • “Since November 8, 2016, the close on the day of the 2016 election, the Wilshire 5000 has gained 31.02% or approximately $7.9 trillion.”
  • “Since December 15, 2015, the close before the Federal Reserve raised interest rates for the first time since June 29, 2006, the Wilshire 5000 index is up 37.64% or approximately $9.1 trillion.”
  • “Since September 12, 2012, the close before [former Federal Reserve Chair Ben] Bernanke revealed QE3, the Wilshire 5000 index is up 93.11% or approximately $16.1 trillion.”
  • “Since August 26, 2010, the close before Bernanke revealed QE2, the Wilshire 5000 index is up 164.66% or approximately $20.8 trillion.”
  • “The Wilshire 5000 is up 323.43% or $26.6 trillion from the financial crisis low of March 9, 2009.”
  • “Since the old, October 9, 2007 market high, the Wilshire 5000 index is up 83.72% or approximately $16.5 trillion.”

 

Nearly Useless Factoid

By Amelia Brust

Rocky Ford, Colorado, is also considered the “Melon Capital of the World” because the Arkansas Valley’s daily temperature swings provide an ideal climate for watermelons and cantaloupes to sweeten. Consequently the Rocky Ford Junior/Senior High School mascot is the Meloneer.

Source: City of Rocky Ford

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