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> Stocks might go sideways for quit a while. Nasdaq-100 is down 21.33% in 7 weeks. According to wikipedia a stock market crash is a decline "of over 10% in a s

> Stocks might go sideways for quit a while. Nasdaq-100 is down 21.33% in 7 weeks. According to wikipedia a stock market crash is a decline "of over 10% in a stock market index over a period of several days". DAX declined even sharper (-16.5% in 12 days; -24% from recent highs). Just as a heads up: this is similar to the 1990's where Iraq invaded Kuwait. The Dow Jones Industrial Average dropped 18% in three months, from 2,911.63 on July 3 to 2,381.99 on October 16,1990. This recession lasted approximately 8 months. This recession is listed as a "stock market crash" on wikipedia. [1] IMO when something loses 1/5th of its value in such a short time it could be considered a crash. [1] https://en.wikipedia.org/wiki/Category:Stock_market_crashes https://en.wikipedia.org/wiki/Category:Stock_market_crashes "Early 1990s recession"

astrange 5y ago
DJIA is calculated using some unusual math on only 30 stocks and you should probably ignore it. It doesn't work the same way any other index does.
- MagnumOpus 5y ago
  If you weren't just interested in derailing the conversation, you would have looked up how this stacks up with a better index. I did, so you might be cheered to know that the S&P 500, a cutting edge market-weight based broad index, dropped 20.2% from 1990-07-03 to 1990-10-11 compared to the DJIA's 18%.
  - astrange 5y ago
    Yes, but there's never any good reason to bring up DJIA unless you're a TV reporter who needs a big number, so I think it's always a good deed to complain about it.
    - ianai 5y ago
      Importantly, no one serious should use the djia as a proxy for a larger sample like the economy. The stock market already isn’t the entire economy and the djia is selected to not be representative of the stock market.
    - llampx 5y ago
      The DJIA selects a certain type of stock. Think more PG than TSLA.
    - bluGill 5y ago
      DJIA was an important index in the before computer days (I guess up until the 1970s) when indexes were calculated by hand. Any reporter could calculate the DJIA in a few minutes and thus provide investors up to date information over the course of a day. Larger index like the S&P500 took long enough to calculate that by the time you did it the calculation was obsolete for news purposes - unless the market was closed. Thus DJIA would be reported hourly, while S&P500 was only calculated overnight. Today we can update any index you might be interested in, in a few milliseconds. (I'm sure there are high frequency traders reading this who can give more accurate timings)

astrange 5y ago

DJIA is calculated using some unusual math on only 30 stocks and you should probably ignore it. It doesn't work the same way any other index does.

MagnumOpus 5y ago
If you weren't just interested in derailing the conversation, you would have looked up how this stacks up with a better index. I did, so you might be cheered to know that the S&P 500, a cutting edge market-weight based broad index, dropped 20.2% from 1990-07-03 to 1990-10-11 compared to the DJIA's 18%.
- astrange 5y ago
  Yes, but there's never any good reason to bring up DJIA unless you're a TV reporter who needs a big number, so I think it's always a good deed to complain about it.
  - ianai 5y ago
    Importantly, no one serious should use the djia as a proxy for a larger sample like the economy. The stock market already isn’t the entire economy and the djia is selected to not be representative of the stock market.
  - llampx 5y ago
    The DJIA selects a certain type of stock. Think more PG than TSLA.
  - bluGill 5y ago
    DJIA was an important index in the before computer days (I guess up until the 1970s) when indexes were calculated by hand. Any reporter could calculate the DJIA in a few minutes and thus provide investors up to date information over the course of a day. Larger index like the S&P500 took long enough to calculate that by the time you did it the calculation was obsolete for news purposes - unless the market was closed. Thus DJIA would be reported hourly, while S&P500 was only calculated overnight. Today we can update any index you might be interested in, in a few milliseconds. (I'm sure there are high frequency traders reading this who can give more accurate timings)