Today is the Dow’s largest point decline on a trading day in history. Today, stocks took their worst loss in six and a half years (2011). This a historic mark that should not be met with praise.Stocks went on a total free fall. This resulted on the Dow plunging approximately 1,600 points. (Also note: Standard & Poor’s 500-stock index fell by more than 4%) However, buyers came back and stabilized the damage. The Dow ended up closing at a 1,175 point decrease(4.6%). Experts call this a “flash crash” due to large amounts of sell order. This all happens after the index was at an all-time record on Jan. 26. According to a stockholder, “When it was dropping from -1,000 points to -1,500 points, it was dropping so fast, there was no time to buy.” This “Flash Crash” has resulted in the disintegration of all of this year’s gains.
However, there is reason to maintain hope. Jim Cramer (Mad Money host) stays optimistic. His words are, “It’s OK, it happens periodically and it freaks people out at home. We can spin any tale we want, but what I am saying is that the market doesn’t work at certain points.” He also remains clear that the last thing an investor should do is “freak out.” According to him, “I see idiots coming in and selling and I see it’s too fast to buy, just remember the flash crash a few years ago, another flash crash a few years ago. When the market can’t handle this kind of trading you get this.” So stay optimistic and let’s see what happens.