How Worried Should You Be? > “A 299-point, or 3.4%, plunge in the Dow Jones industrial average…shaved $1.1 trillion from the total market capitalization of New York Stock Exchange issues and obliterated the gains of the past few months…The bounce-back could take far longer–at minimum, investors may have to settle for average or subpar gains for at least a few months. This time, the market is acting against a backdrop of far greater uncertainty. Asia’s woes seem to be worsening–as are the ripple effects. And now, the impact on the U.S. economy can no longer be ignored: A sharp drop in exports helped push down gross domestic product growth to 1.4% in the second quarter, stirring fears that the long economic expansion could be slowing.” Business Week, 8.17.98
On the date of publication, the Dow hit 8,574. Ten years later, the Dow was at 11,659, an increase of over 25%.
