Stock markets around the globe experienced a good deal of market volatility last week and again today. Sudden sell offs like these may be scary and unnerving to some investors. We feel it is important to keep you informed during these bouts of volatility. We'd like to highlight three aspects regarding market volatility and corrections to help us all keep a broader perspective on these events. Stock market corrections are normal and healthy After Friday's trading drop of 3.2%, this morning started with the Dow opening in an immediate decline of over 1,000 points (down over 6%). The Dow recovered some of the losses as bargain hunters stepped in pairing back the day's decline to 588.47 points, down just over 3.5%. The Dow has never lost more than 800 points in day1. Concerns over the pace of global growth, China's Economic problems, the devaluation of the Yuan and the drop in oil paired with the possibility of the U.S. Federal Reserve increasing short-term rates in September sent most major global stock markets down. In the U.S., the Dow Jones Industrial Average officially has officially dipped into correction territory (i.e., when there is a decline 10% or more off of a...
