Worst Two-Day Decline Since the '87 Crash

While the declines we saw in October seemed extreme, one landmark we failed to reach during that period was a two-day decline of 10% or more.  Well, we can check that one off the list.  With two 5% declines in a row, the S&P 500 is now down 10.02% since election day.

Comments

[dixie:]

What do you expect with Pelosi, Reid, and Obama waiting to take center stage?

The market is headed for the exit with increasing velocity. Problem will soon be solved, i.e. nothing left for these actors to tax or spend.

2008 Nov 06 04:51 PM

[bosun.j:]

Outstanding! You passed 2nd grade math! Congratulations!

Are you trying to infer something but don't have the testicular fortitude to step up and own it?

2008 Nov 06 04:51 PM

[Nikola:]

Yes, dixie, people will soon realize that they made a mistake, and will vote Bush and the Neocons back in, and then the stock market will soar again like it did during the past 8 years.

I am an investor and pro-business and so I voted for Democrats all around. Bush and six years of the Republican Congress have just about bankrupt this country. Last time we had a Democratic President how did the stock market do? Where was the Dow when Bush took office and where is it today?

Get out of here.

2008 Nov 06 06:46 PM

[Arnbjorn In...:]

Why so sensitive bosun? If you followed the posts of Bespoke Investment Group you would know they report all sorts of statistical facts that many people (myself included) find interesting. The election was not mentioned anywhere -- making that connection is your own doing. I think you should do basic research about people before you start discussing their testicles.

2008 Nov 06 06:49 PM

[Pup:]

I, for one, truly appreciate this site's information, but would love to have some of the more obvious (to the amatuer these things aren't always obvious) conclusions spelled out clearly. For instance, some trader phrases still elude me, so I don't always get the (incredibly obvious) point.

2008 Nov 06 06:59 PM

[oldgoldbug:]

I keep hearing from folks like dixie that the Democratic (Socialist in their view) politicians will implement all sorts of "tax and spend" programs, but I guess I am at a loss as to why the Republicans get a free pass on doubling the national debt, fighting two wars on borrowed money, running enormous deficits, ignoring regulations of all types from the environment to the investment markets, bailing out Wall Street etc etc. I guess socialism benefiting corporations is different than socialism benefiting people. I truly wish I understood that point of view better because it just seems to be a massive denial of the facts as we see them at this moment.

2008 Nov 06 07:01 PM

[jse17:]

"Problem will soon be solved, i.e. nothing left for these actors to tax or spend."

Problem will soon be solved, i.e. nothing left for the good Republicans and their cronies to steal.

There, I fixed your quote for you!

2008 Nov 06 07:02 PM

[tekram:]

Yawn.... VIX above 50 will do that to the market. If you relax the criteria to 9%, you will get the following with $INDU (see below, going back to 1920s, data not shown for the other 29 instances). So basically you have this kind of historic volatility that makes 2 day declines > 9% common place, almost every other week in the last 5 weeks.

10/7/2008 0.09
10/9/2008 0.10
10/10/2008 0.10
10/15/2008 0.09
11/6/2008 0.11

2008 Nov 06 07:07 PM

[Tony Petroski:]

I don't think the market is tanking because of Obama but:

1) Many of the sophisto's writing on this site claim that election of Democrats is great for markets.
2) More from the sophisto's: Markets hate the unknown. Therefore, once the results of the election are known, the markets will rally.
3) If the market had rallied strongly post-election, Obama would get the credit.

Bespoke Investment Group: Great stuff.

2008 Nov 06 07:50 PM

[redstaterob:]

The deficit is due to our ongoing war on terror. 9/11 took about seven years of planning....90% of which took place during Clinton's term. Of course, Clinton was too busy doing 'other things' in the Oval Office rather than going after the terrorists. And he was impeached for it. Two wars? Yes, fighting two wars because of 9/11....a Democratic debacle. Regulations on Fannie Mae and Freddie? Yeah....those regulations were blocked by Chris Dodd, Obama, and Barney Frank. Hey, did you know that Rahm Emmanuel was on the board of directors of Freddie Mac right after he left the Clinton White House?

The Democrats are so corrupt it is incredible. We are screwed with this southside Chicago political hack in the White House.

Get ready for a wild ride and JUST ONE TERM for this charlatan...

just my very humble opinion

On Nov 06 07:01 PM oldgoldbug wrote:

> I keep hearing from folks like dixie that the Democratic (Socialist
> in their view) politicians will implement all sorts of "tax and spend"
> programs, but I guess I am at a loss as to why the Republicans get
> a free pass on doubling the national debt, fighting two wars on borrowed
> money, running enormous deficits, ignoring regulations of all types
> from the environment to the investment markets, bailing out Wall
> Street etc etc. I guess socialism benefiting corporations is different
> than socialism benefiting people. I truly wish I understood that
> point of view better because it just seems to be a massive denial
> of the facts as we see them at this moment.

2008 Nov 06 07:51 PM

[MarvinMBA:]

Actually, I believe that certain segments of the market are oversold..for example: GE certainly has its fingers on lots of worldwide projects and potential for many more in the Mass Transportation,, Energy and Financial Industries...do not sell companies like GE and MSFT short in my opinion..MarvinMBA

2008 Nov 06 08:17 PM

[tekram:]

Bespoke,
"October seemed extreme, one landmark we failed to reach during that period was a two-day decline of 10% or more."

I think you missed a few on the SPX in October ? Using SPX.X from Tradestation data, the following recent dates showed a 10% or more 2-day decline. There are several more with 9.x% declines.

10/7/2008 10.3390 %
10/15/2008 10.5206 %
11/6/2008 11.1473 %


spx.x to 1960
10/19/1987 32.5802 %
10/20/1987 19.3641 %
9/29/2008 9.2957 %
10/7/2008 10.3390 %
10/9/2008 9.4854 %
10/10/2008 9.5327 %
10/15/2008 10.5206 %
10/22/2008 9.8820 %
11/6/2008 11.1473 %

2008 Nov 06 08:17 PM

[Who's the p...:]

Hey redstaterob, why don't you take your red states and just leave already. really: since your genius from alaska doesn't think we should bother with the environment either, we would be happy to just ship all our garbage and nuclear strike that nuke-ula waste up there. Either that, or have those red state hicks stop sucking all our federal dollars to pay for you and that trashy woman's excess babies. seriously, sayonara dude. let us get on with the job of fixing the mess you folks have made of OUR country.


On Nov 06 07:51 PM redstaterob wrote:

>
> The deficit is due to our ongoing war on terror. 9/11 took about
> seven years of planning....90% of which took place during Clinton's
> term. Of course, Clinton was too busy doing 'other things' in the
> Oval Office rather than going after the terrorists. And he was impeached
> for it. Two wars? Yes, fighting two wars because of 9/11....a Democratic
> debacle. Regulations on Fannie Mae and Freddie? Yeah....those regulations
> were blocked by Chris Dodd, Obama, and Barney Frank. Hey, did you
> know that Rahm Emmanuel was on the board of directors of Freddie
> Mac right after he left the Clinton White House?
>
> The Democrats are so corrupt it is incredible. We are screwed with
> this southside Chicago political hack in the White House.
>
> Get ready for a wild ride and JUST ONE TERM for this charlatan...
>
>
> just my very humble opinion
>
> On Nov 06 07:01 PM oldgoldbug wrote:

2008 Nov 06 08:44 PM